Precise Investors Editorial Team
Chinese stocks lagged, with chipmaking shares dropping sharply
Most Asian stock gained on Monday, recouping some recent losses amid renewed market optimism.
Bargain buying into battered technology stocks also helped, as investors returned to the sector after steep losses in recent weeks. Still, trading volumes were dulled by a holiday in Japan.
Chinese stocks lagged, with chipmaking shares dropping sharply.
Airline shares were also pressured by reports that Chinese travellers had cancelled thousands of flights to Japan, amid heightened tensions between Beijing and Tokyo.
Asian markets gained, with ASX 200 up 1%, while Straits Times index advanced 0.4%.
Nifty 50 index added 0.3%, while Hong Kong’s Hang Seng soared 1.6% on strength in broader tech shares.
KOSPI advanced 1.5% before sharply curbing gains to trade 0.2% higher.
Chinese shares lagged on losses in major chipmaking stocks, while questions over Beijing’s plans for more stimulus also remained.
The mainland China Shanghai Shenzhen CSI 300 and Shanghai Composite indexes dropped nearly 0.3% each, while gains in Hong Kong were also limited by chipmaker losses.
Gains were also driven by a resurgence in bets on a December rate cut by the U.S. central bank, especially after New York Fed President John Williams called for a rate cut in December.
Traders were seen pricing in a 67.3% probability for a 25 basis point cut in December, a sharp reversal from the 39.8% chance seen last week, CME Fedwatch showed.
A host of U.S. economic readings for September, including inflation and labour market prints, are due this week and are set to offer more cues on the world’s largest economy. But a lack of readings for October will still leave the central bank flying blind into its early-December meeting.
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