LONDON (Reuters) - China-exposed assets jumped on Tuesday after Beijing announced its biggest stimulus since the pandemic in a bid to pull the world's second-largest economy out of the deflationary funk that has shaken global currency and equity markets this year. The broader-than-expected package offers more funding and interest rate cuts. European stocks, emerging-market currencies and commodities lapped up the news, but analysts questioned how effective it would be in the longer run, given extremely weak credit demand from domestic businesses and consumers.
Here we look at five places where China's economic weakness has been particularly felt, and what these new measures might mean. GOING UNDERGROUND Bruised mining stocks were the biggest gainers in Europe and Australia on Tuesday. "The stimulus measures may support the property markets more than broader consumption or industrial activity and so it is no surprise that the depressed mining stocks are outperforming," said Gerry Fowler, head of European equity strategy at UBS.
"It remains to be seen if these measures are sufficient to ignite more private sector optimism. History would suggest fiscal rather than monetary measures are more effective." An index of European mining stocks rose 4.
6% its biggest daily gain in two years, while Australian mining stocks rose 2.8%, logging their largest daily rise in a year. Both have been under pressure in recent months.
HEY, BIG SPENDERS Shares in European luxury retailers, popular wi.