Investing.com — Most Asian stocks rose on Monday, while Chinese markets experienced significant fluctuations after Beijing provided unclear signals about its fiscal stimulus plans, amidst disappointing inflation data.
Trading volumes were low due to a holiday in Japan.
Asian markets were boosted by Wall Street gains, where the S&P 500 and Dow Jones hit record highs on Friday, driven by strong earnings from banks.
This week, attention turns to third-quarter earnings and speeches from Federal Reserve officials.
China Stocks Volatile Amid Weak Inflation
Chinese stocks saw wild swings, with the Shanghai Shenzhen CSI 300 and Shanghai Composite indexes rising about 0.2% after initially gaining 2%. China’s finance ministry announced plans for fiscal stimulus, including debt issuance and support for provinces, but lacked specific details, reducing investor enthusiasm.
Analysts note these measures could increase government debt significantly. Investors are skeptical about Beijing’s capacity for fiscal stimulus given its already high debt levels. China’s inflation data showed ongoing weakness, with consumer inflation unexpectedly dropping in September and producer inflation shrinking for the 23rd month.
Mixed feelings about China were reflected in Hong Kong, where the Hang Seng index fell over 2%. Prior gains in Chinese stocks following a monetary stimulus announcement diminished due to the lack of clear details about the new measures.
Chinese trade data expected later today may provide more economic insights.
Asian Stocks Follow Wall Street Gains
Overall, Asian markets were up, influenced by Wall Street’s performance. Australia’s ASX 200 rose 0.4%, benefitting from expectations of Chinese stimulus. Nikkei 225 Futures dropped 0.4% due to Japan’s holiday.
South Korea’s KOSPI increased by 0.4%, while Indian Nifty 50 index futures suggested a negative start as the index struggled around 25,000 points. Indian consumer inflation data is anticipated later today and is expected to show a sharp rise for September.
