Investing.com– Most Asian stocks rose on Monday, but Chinese markets experienced significant fluctuations after Beijing gave mixed signals about its fiscal stimulus plans, coinciding with weak inflation data. Trading volumes were lower due to a market holiday in Japan.
Asian markets were encouraged by Wall Street’s recent performance, where the S&P 500 and Dow Jones reached record highs, driven by positive bank earnings. This week, attention will be on third-quarter earnings reports and speeches from Federal Reserve officials.
China’s Stocks Volatile Amid Stimulus Uncertainty
Chinese stocks traded erratically, with the Shanghai Shenzhen CSI 300 and Shanghai Composite indexes briefly rising by 2% but settling about 0.2% higher later. The Chinese finance ministry announced plans for fiscal stimulus but lacked details on the extent and timing, causing investor skepticism.
Analysts warn that the stimulus could lead to significantly increased government debt, further complicating China’s already high debt situation. Economic data shows continued weakness, including unexpectedly low consumer inflation and a 23rd month of declining producer inflation.
During volatile trading, Hong Kong’s Hang Seng index dropped over 2%, reflecting mixed sentiment towards China. Despite recent gains from previous monetary stimulus announcements, the lack of clarity around new measures has dampened enthusiasm.
Chinese trade data is expected later today, which may provide additional economic insights.
Asian Markets Follow Wall Street Gains
Broader Asian markets gained, following Wall Street’s positive lead. Australia’s ASX 200 rose 0.4%, benefiting from potential stimulus in China, its largest trading partner. In contrast, Nikkei 225 Futures fell 0.4% due to the holiday in Japan.
South Korea’s KOSPI added 0.4%, while futures for India’s Nifty 50 index suggested a lower opening as it struggled around the 25,000 point mark. Indian consumer inflation data, expected to show a significant rise for September, will be released later today.
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