Investing.com—Most Asian stocks rose on Monday, while Chinese markets showed volatility after Beijing announced unclear fiscal stimulus plans amid disappointing inflation data.
Trading was slow due to a holiday in Japan.
Asian markets were boosted by Wall Street’s strong performance, with the S&P 500 and Dow Jones hitting record highs on Friday following positive earnings from major banks.
This week, attention will be on more third-quarter earnings and addresses from various Federal Reserve officials.
China Stocks Volatile Amid Stimulus Concerns
Chinese stocks experienced large fluctuations, with the Shanghai Shenzhen CSI 300 and Shanghai Composite indexes rising about 0.2% after earlier gains of 2%.
The Chinese finance ministry announced fiscal stimulus measures over the weekend, including more debt and support for local governments. However, key details on timing and scope were not provided, leading to reduced optimism.
Analysts noted that these measures would significantly increase government debt, raising concerns about Beijing’s capacity for further stimulus given existing debt levels.
Economic data revealed ongoing weaknesses, with consumer inflation unexpectedly slowing in September and producer inflation declining for the 23rd month in a row.
In Hong Kong, the market reflected mixed sentiment with the Hang Seng dropping over 2% amid volatility.
Despite recent gains spurred by a new monetary stimulus plan, uncertainty due to vague details saw the rally lose momentum.
Chinese trade data is expected later today, which may provide additional economic insight.
Asian Stocks Follow Wall Street Gains
Asian markets generally advanced, influenced by Wall Street’s positive session. Australia’s ASX 200 rose 0.4%, buoyed by expectations of increased stimulus from China, its largest trading partner.
Nikkei 225 futures fell 0.4% due to the Japanese market holiday.
South Korea’s KOSPI gained 0.4%, while India’s Nifty 50 index futures indicated a downward trend, struggling to maintain the 25,000 point level.
India’s consumer inflation data is set to be released later today, with expectations of a sharp increase for September.
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