Asian markets saw mixed movements on Monday, with investors reacting to China’s recently announced 10 trillion yuan ($1.39 trillion) debt package aimed at easing local government financing issues. However, the stimulus appeared to fall short of expectations, leading to declines in some indexes, especially in Hong Kong.
- Hong Kong’s Hang Seng Index (HSI) fell by 1.74% to 20,367.73, leading the region’s losses, as Beijing’s latest economic measures did not meet investors’ hopes for a more direct stimulus.
- Shenzhen Index gained 1.44%, rising 160.34 points to 11,322.04, buoyed by expectations that some sectors may benefit from the announced debt relief measures.
- Shanghai Composite inched up by 0.05%, with a slight gain of 1.88 points, to 3,454.17, reflecting cautious optimism in China’s broader markets.
- Nikkei 225 in Japan remained flat at 39,502.25, as investors awaited further developments in both the U.S. inflation data and potential Federal Reserve insights later in the week.
Other regional indexes saw varied reactions:
- South Korea’s KOSPI declined by 0.97% to 2,536.29, reflecting concerns over global economic uncertainty.
- Australia’s ASX 200 edged down 0.35% to 8,266.2.
- Nifty 50 in India rose 0.64%, climbing 155.2 points to 24,303.4.
- Singapore’s STI saw a modest gain of 0.2% at 3,731.65.
The broader Asian market sentiment was affected by the U.S. dollar’s strength and expectations of further insights on inflation from the Federal Reserve, with Chair Jerome Powell scheduled to speak later this week.
