The CSI 300 Index was down by 0.08%, while Hong Kong’s Hang Seng index surged by 2%, recovering from a 2.5% drop on Tuesday
Asian equities experienced an increase in value on Wednesday as investors anticipated signals from Beijing during its week-long annual parliamentary session following a lack of stimulus measures that left some traders disappointed.
Gold and bitcoin, on the other hand, saw a decrease after reaching all-time highs.
Investors were cautious about making significant investments ahead of Federal Reserve Chair Jerome Powell’s congressional testimony scheduled for later in the day on Wednesday. This testimony will be closely analyzed to determine the U.S. central bank’s readiness to begin reducing interest rates.
Chinese stocks displayed mixed performance after Beijing announced a 5% growth target for 2024 at a crucial parliamentary meeting, which did not include significant stimulus measures.
The CSI 300 Index was down by 0.08%, while Hong Kong’s Hang Seng index surged by 2%, recovering from a 2.5% drop on Tuesday.
The 2024 (China) economic targets still show officials are unwilling to quickly reflate the economy given concerns about excessive debt and the weakness of the yuan, said Mansoor Mohi-uddin, chief economist at the Bank of Singapore.
Investors will closely monitor an economy-focused press conference scheduled for 0700 GMT on Wednesday, where officials from the People’s Bank of China and other regulatory bodies may provide additional policy insights in response to media inquiries.
The cautious approach led to a lacklustre trading session in Asia, with MSCI’s broadest index of Asia-Pacific shares outside Japan initially declining before reversing course to trade 0.46% higher.
On Tuesday, Wall Street’s major indexes all fell by more than 1%, with weakness in large-cap growth companies like Apple and the chip sector weighing heavily on the tech-heavy Nasdaq.
E-mini futures for the S&P 500 increased by 0.09%. European markets are expected to open slightly higher, with Eurostoxx 50 futures up by 0.10%, German DAX futures up by 0.14% and FTSE futures up by 0.05%.
