Asian markets boosted as Beijing hints at more QE

Asian markets were boosted overnight by speculation the Chinese government is poised to begin loosening its monetary policy in response to the impacts of the eurozone debt crisis.

Hong Kong's Hang Seng index climbed 0.7% to 18,997.3, while the S&P/ASX 200 index rose 1.14% to 4,152.2 on the news the authorities in China may move to stimulate the housing market.

Yesterday UBS indicated that China was due to take action to prevent a collapse of its housing market by easing curbs on the sector as early as mid-2012, according to a Bloomberg television interview with UBS head of China equity strategy Chen Li.

The Shanghai Composite index also gained 2.7% on the news to 2,286.19, while Japan's Nikkei 225 showed a positive gain of 0.38% to reach 8,422.26.

However, slowing export growth provided a dampener, after statistics published today showed that growth in China's exports had slowed in December due to sluggish demand from the US and Europe.

China's Vice Commerce Minister Zhong Shan also said on Monday that the country's foreign trade environment could be bleak in 2012, as demand declines, the BBC reported.

US Treasury secretary Tim Geithner is due to arrive in Beijing on Tuesday for a two-day visit to discuss trade and economic issues.