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Asia shares waver amid weakness in Chinese stocks

Chinese tech stocks

Equities in Hong Kong were 0.6% lower, while China’s blue-chip index wavered between losses and gains

Asia shares slipped in and out of positive territory on Monday, under pressure from weakness in Chinese stocks, but bitcoin scaled a three-month high as “Trump trades” continued to ramp up.

Gold touched another record high on conflict in the Middle East and an extremely close U.S. presidential election, with the yellow metal expected to stay in favour among much global uncertainty.

Optimism over Beijing’s slew of stimulus measures first announced late in September has turned into caution in recent days as investors look to further details of more fiscal support from policymakers.

Though China cut its benchmark lending rates on Monday, the move was anticipated.

Equities in Hong Kong were 0.6% lower, while China’s blue-chip index wavered between losses and gains. It was 0.4% higher, while the Shanghai Composite Index added 0.36%.

That capped gains in MSCI’s broadest index of Asia-Pacific shares outside Japan, which were up a marginal 0.11%, a step back in sentiment after U.S. stocks posted a sixth consecutive week of gains on Friday.

Japan’s Nikkei added 0.34%.

Further details on Chinese stimulus might take some time to emerge.

We might have to wait until late October or early November for concrete plans from the Standing Committee meeting of the National People’s Congress, according to Chaoping Zhu, global market strategist at J.P. Morgan Asset Management in Shanghai.

With just about two weeks to go before the November 5. U.S. election, bets that a Donald Trump victory are on rise in some financial instruments.

The Republican candidate’s tariff, tax and immigration policies are seen as inflationary, and thus negative for bonds and positive for the dollar. He is also seen as taking a more favourable stance towards crypto currencies.

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