Investing.com — Most Asian stocks rose on Monday, with Chinese markets experiencing wild swings after mixed signals from Beijing regarding fiscal stimulus amid disappointing inflation data.
Trading volumes in Asia were lower due to a holiday in Japan.
Markets were encouraged by Wall Street’s record highs on Friday, driven by strong bank earnings. This week, attention is on more third-quarter earnings and speeches from Federal Reserve officials.
China Stocks Volatile on Mixed Signals
Chinese stocks showed volatility in morning trading, with the CSI 300 and Shanghai Composite indexes trimming early gains to about 0.2% higher. Both had risen nearly 2% at one point.
The Chinese finance ministry announced plans for fiscal stimulus, including debt issuances and support for provincial governments, but lacked details on timing or scope, dampening enthusiasm.
Analysts expressed concerns about how much fiscal room the government has due to high debt levels. Recent economic data showed persistent weakness, with consumer inflation unexpectedly declining in September and producer inflation dropping for the 23rd month.
Mixed sentiment was reflected in Hong Kong, where the Hang Seng index fell over 2% amid volatility.
Strong gains in Chinese stocks over the past weeks faded due to unclear stimulus details. Upcoming Chinese trade data may provide further economic insights.
Asian Markets Follow Wall Street Up
Broader Asian markets rose, influenced by Wall Street’s positive session. Australia’s ASX 200 gained 0.4%, benefiting from potential Chinese stimulus as the latter is Australia’s largest trading partner.
Japan’s Nikkei 225 Futures fell 0.4% due to the holiday. South Korea’s KOSPI rose 0.4%, while India’s Nifty 50 futures indicated a negative start as the index struggled around 25,000 points.
Indian consumer inflation data is expected later today to show a significant rise for September.
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