Chinese stocks led the declines in Asia-Pacific markets on Friday, with the SSE Composite Index falling 2.55%, currently at 3,217.74. Mainland China’s CSI 300 blue-chip index also dropped 2.77% to close at 3,887.17, marking a 3.25% decline for the week. Investors are cautiously waiting for a highly anticipated policy briefing from China’s Ministry of Finance, scheduled for Saturday. The briefing is expected to introduce new fiscal stimulus measures aimed at boosting the Chinese economy.
The sell-off in Chinese stocks comes as the stimulus-fueled rally seen earlier in the year continues to fade, leaving markets in a slump. The upcoming policy announcement could be crucial for investor sentiment, though markets will remain closed in China on Saturday.
Meanwhile, in South Korea, the Bank of Korea made a significant move by cutting its benchmark interest rate by 25 basis points to 3.25%, marking its first rate cut since 2020. This rate cut comes in response to easing inflation, which dropped to 1.6% in September, below the central bank’s target of 2%. The cut signals the end of South Korea’s tightening cycle, which previously drove rates to a 15-year high.
Oil prices also retreated after rising more than 3% earlier in the week due to rising fuel demand ahead of Hurricane Milton and concerns over escalating tensions in the Middle East.
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