Investing.com

Most Asian stocks drifted higher on Thursday as focus turned to key U.S. inflation data for insights on interest rates, while Chinese markets experienced wild fluctuations amid plans for more fiscal stimulus measures from Beijing.

Regional markets received a positive boost from Wall Street, where the Dow Jones Industrial Average reached a record closing high following minutes from the Federal Reserve’s September meeting, indicating support for a 50 basis point cut.

However, U.S. stock index futures remained flat in Asian trade, as the minutes also suggested the Fed did not commit to a specific pace of interest rate cuts.

Chinese Stocks Volatile Amid Doubts Over Stimulus

China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes fluctuated around 1% in choppy trading after a significant decline the previous day. Stocks continued to drop despite the finance ministry announcing a briefing on upcoming fiscal stimulus measures aimed at boosting growth on Saturday.

This move followed a disappointing briefing on Tuesday, where recent monetary stimulus measures did not meet investor expectations, causing Chinese markets to fall from two-year highs on Wednesday.

Some investors are skeptical about how much more support Beijing will provide amidst rising debt levels. In contrast, Hong Kong’s Hang Seng index surged 2.5%, recovering from severe earlier losses, with Trip.com Group Ltd (HK:9961) leading the gains with over a 5% rise after Citi adjusted its earnings estimates upwards for the company.

Chinese markets received some relief from the People’s Bank of China, which injected 500 billion yuan ($70.69 billion) into capital markets as liquidity support.

Asian Markets Rise, CPI in Focus

Broader Asian markets were cautiously optimistic on Thursday, with attention shifting to U.S. consumer price index inflation data expected later in the day for insights on the future of interest rates.

Japan’s Nikkei 225 index increased by 0.3%, and the TOPIX added 0.2%. Gains in Japan were restrained by data reflecting a larger-than-expected rise in producer price index inflation in September, potentially signaling increasing inflationary pressures in the country.

Optimism regarding China facilitated a 0.6% uptick in Australia’s ASX 200, due to the country’s significant trade links with the mainland. Meanwhile, South Korea’s KOSPI grew by 0.5%, rebounding from a holiday-related pause on Wednesday.

Futures for India’s Nifty 50 index suggested a flat opening, as the index dealt with a recent decline from record peaks over the past week.