Investing.com—Most Asian stocks rose on Monday, while Chinese markets saw significant fluctuations due to mixed signals about Beijing’s fiscal stimulus plans and disappointing inflation data.
Trading volume in Asia was light due to a holiday in Japan.
Regional markets were positively influenced by Wall Street, where the S&P 500 and Dow Jones reached record highs on Friday, buoyed by strong bank earnings.
This week focuses on third-quarter earnings and speeches from Federal Reserve officials.
China Stocks Volatile Amid Stimulus and Weak Inflation
Chinese stocks showed volatility in morning trading, with the Shanghai Shenzhen CSI 300 and Shanghai Composite indexes initially rising up to 2% but later trading about 0.2% higher.
China’s finance ministry announced plans for fiscal stimulus, including more debt and support for regional governments, but lacked important details on timing and extent, which dampened enthusiasm.
Analysts at ANZ noted this could “significantly increase government debt,” and investors questioned Beijing’s capacity for fiscal stimulus given existing debt levels.
Economic data from China revealed ongoing weakness, with consumer inflation unexpectedly dropping in September and producer inflation declining for the 23rd month in a row.
Mixed sentiment was evident in Hong Kong, where the Hang Seng index fell over 2% amid volatile trading.
Chinese stocks had gained recently following a new round of monetary stimulus, but the absence of clear details on new measures led to a stall in the rally.
Chinese trade data expected later on Monday may provide additional economic insights.
Asia Stocks Follow Wall Street Gains
Broader Asian markets rose, tracking gains from Wall Street. Australia’s ASX 200 increased by 0.4%, supported by potential stimulus in China, its largest trading partner.
Nikkei 225 Futures fell 0.4% due to Japan’s market holiday.
South Korea’s KOSPI rose by 0.4%, while Indian Nifty 50 futures indicated a negative opening as the index struggled to stay around 25,000 points.
Indian consumer inflation data is also expected today, showing a sharp rise for September.
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