Investing.com—Most Asian stocks rose on Monday, while Chinese markets had wild swings after the government gave mixed signals on its fiscal stimulus plans. Inflation data from China was disappointing.
Trading volumes were low due to a holiday in Japan.
Asian markets got a boost from Wall Street, where the S&P 500 and Dow Jones hit record highs following positive bank earnings.
This week, attention turns to more third-quarter earnings and talks from Federal Reserve officials.
China Stocks Volatile Amid Stimulus Concerns
Chinese stocks saw significant fluctuations, with the Shanghai Shenzhen CSI 300 and Shanghai Composite indexes initially rising but then settling about 0.2% higher. Both indexes had jumped by as much as 2% earlier.
China’s finance ministry announced fiscal stimulus measures, including more debt issuances, but did not provide important details, which lowered overall optimism.
Analysts noted these measures could lead to a significant increase in government debt, raising doubts about how much stimulus the government can provide given its high debt levels.
Economic indicators showed ongoing weakness, with consumer and producer inflation both declining.
The mixed outlook was reflected in Hong Kong, where the Hang Seng dropped over 2% in volatile trading.
Chinese stocks had been rising recently but lost momentum due to unclear stimulus plans. Trade data from China is expected later today.
Asia Stocks Follow Wall Street’s Lead
Broader Asian markets were up, following gains on Wall Street. Australia’s ASX 200 rose by 0.4%, supported by expectations of increased Chinese stimulus.
Nikkei 225 futures fell by 0.4%, as Japanese markets were closed for a holiday.
South Korea’s KOSPI rose by 0.4%, while India’s Nifty 50 futures indicated a negative start as the index struggled to maintain around 25,000 points.
Indian consumer inflation data, expected today, is anticipated to show a sharp rise for September.
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