China’s stock markets grabbed the headlines on Wednesday, amid a day of mixed results across the region, as share prices plunged over investor scepticism about Beijing’s plans to turn around the country’s struggling economy.
Mainland Chinese stocks tumbled, with their Hong Kong peers also in retreat, as investors booked profits after a blistering rally with officials failing to inspire confidence over China’s stimulus plans.
Benchmark indexes in China saw a sharp reversal from the advances seen the day before, when markets returned from the week-long National Day holiday with a bang and scaled more than two-year highs.
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The Shanghai Composite Index plunged 6.62%, or 230.92 points, to 3,258.86, while the Shenzhen Composite Index on China’s second exchange dropped 8.65%, or 181.45 points, to 1,917.31.
The A-share market, comprising stocks listed in Shanghai, Shenzhen and Beijing, had a roller-coaster ride on Tuesday, with turnover hitting a record $493.17 billion, but on Wednesday the blue-chip CSI300 index dropped 7.05%, snapping a 10-day winning streak.
The losses came after officials fell short of delivering further details of Beijing’s massive stimulus measures at the highly anticipated National Development and Reform Commission (NDRC) press conference on Tuesday, leaving investors disappointed.
Hong Kong’s Hang Seng index dropped 1.38%, or 289.55 points, to end at 20,637.24, though it remains one of the region’s best-performing markets this year following its steepest rally in a generation over recent weeks.
The Hang Seng Mainland Properties Index slid 3.27%, while technology shares shed 1,17%.
Tourism shares were also among the top losers, as data showed that spending during the Golden Week holiday was yet to recover to pre-Covid levels. An index tracking the performance of the sector lost 7.9%.
Japan’s Nikkei share average rose, though, with tech stocks tracking their US peers higher, while shares of 7-Eleven owner and takeover target Seven & i Holdings jumped following a media report of a sweetened bid.
The Nikkei share average was up 0.87%, or 340.42 points, to close at 39,277.96, while the broader Topix was ahead 0.30%, or 8.09 points, to 2,707.24.
US Dollar Advances
Nvidia supplier Advantest took the top spot, rallying 3.05%. Also in the top five were chip-making equipment giant Tokyo Electron, AI-focused startup investor SoftBank Group and staffing agency Recruit Holdings, which rose 1.1%, 0.91% and 1.54%, respectively.
Japanese retailers are reporting earnings this week, with both Seven & i and Uniqlo-owner Fast Retailing due to announce their results after the closing bell on Thursday.
Elsewhere across the region, in earlier trade, Sydney, Singapore, Mumbai, Taipei, Wellington and Jakarta also rose, though Manila dipped.
Market expectations of Federal Reserve rate cuts have been pared back following strong US labour market data last week, lifting yields and the dollar which was the backdrop to a 0.9% slide for the New Zealand dollar in the Asia session.
The kiwi fell through its 200-day moving average to a seven-week low after the central bank cut interest rates by 50 basis points and left the door open to more.
The dollar also rose slightly to 148.525 yen and $1.0971 per euro.
Treasuries steadied following recent selling, leaving US two-year yields at 3.96% and 10-year yields at 4.01%.
Key figures
Tokyo – Nikkei 225 > UP 0.87% at 39,277.96 (close)
Hong Kong – Hang Seng Index < DOWN 1.38% at 20,637.24 (close)
Shanghai – Composite < DOWN 6.62% at 3,258.86 (close)
London – FTSE 100 > UP 0.38% at 8,222.05 (0934 BST)
New York – Dow > UP 0.30% at 42,080.37 (Tuesday close)
- Reuters with additional editing by Sean O’Meara
Read more:
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Nikkei Rallies on US Jobs, Weak Yen; Hang Seng Hits 2-Year High
