The Hang Seng Index dropped 2.4% to 20,418.61, the Shanghai Composite shed 5.1% to 3,311.02, the CSI300 Index stumbled 5.6%, while the Nikkei 225 index gained 0.6% to 39,178.70 and S&P/ASX 200 advanced 0.2% at 8,189.70
Shares in China slumped on Wednesday as details of economic stimulus plans from officials in Beijing failed to live up to investors’ expectations, while other markets in Asia gained.
Stocks in Hong Kong wavered between gains and losses, with the Hang Seng Index dropping by 2.4% to 20,418.61. This decline followed a slump of more than 9% on Tuesday as traders sold off shares after recent rallies.
A lack of new stimulus has been the cause of disappointment, with many market participants hoping that its fiscal policies will follow in the footstep of the financial ‘bazooka’ delivered in late-September, but there was clearly a step-down in yesterday’s announcement, Yeap Jun Rong of IG said in a commentary.
The Shanghai Composite shed 5.1% to 3,311.02 after it added 4.6% Tuesday, reopening from a national holiday. The CSI300 Index, which tracks the top 300 stocks traded in the Shanghai and Shenzhen markets, stumbled 5.6%.
Let’s call it what it is — an abject failure — as Chinese shares opened sharply down, sending a clear signal that the market is no longer buying half-hearted promises, Stephen Innes of SPI Asset Management said in a commentary.
In Tokyo, the Nikkei 225 index gained 0.6% to 39,178.70. Shares of the Japanese retailer Seven & i Holdings surged more than 10% in early trading after media reported that Canadian convenience store operator Alimentation Couche-Tard had increased its takeover bid by around 20%.
Japan’s parliament was due to be dissolved on Wednesday to pave the way for a general election. Prime Minister Shigeru Ishiba is seeking to consolidate support after taking office last week, amid signs the Liberal Democrats’ ruling coalition remains shaky after Ishiba’s predecessor, Fumio Kishida, stepped down following a slew of scandals among the party’s lawmakers.
Australia’s S&P/ASX 200 advanced 0.2% at 8,189.70. South Korea’s markets were shut for a public holiday.
