China & India Diverging

Chinese stocks are rallying on AI exuberance and a leap of faith that governmental reforms will bear fruit, with little fundamental support for their ascent from earnings or economic data. William likens it to a similar runup a decade ago, which preceded a sudden plummet. The government’s team of investors can swoop into the stock market with buying support at critical times, but that does nothing for China’s underlying structural problems. … Also: Record outflows from India’s stock market reflect concerns about the economy’s ability to shoulder 50% US tariffs, which will imperil labor-intensive sectors that don’t generate enough low-end jobs as it is. The economy needs a fiscal stimulus jolt.