Asian Market Update

Most Asian stocks rose on Wednesday, tracking gains in U.S. technology shares, while Chinese markets fell sharply due to a lack of detailed stimulus measures.

Positive Lead from Wall Street

Regional markets received a boost from Wall Street, with technology stocks sparking overnight gains. However, U.S. stock index futures were muted in Asian trade. Investors await further cues on the Federal Reserve and inflation in the coming days, following earlier bets on a slower pace of U.S. rate cuts that impacted stock markets negatively.

Chinese Stocks Slide as Stimulus Rally Fizzles

China's Shanghai Shenzhen CSI 300 and Shanghai Composite indexes were the worst performers on Wednesday, both falling over 4% from two-year highs. After a sharp rise on Tuesday, driven by resumed trading and stimulus measures announced in late September, the rally fizzled due to scant details on how stimulus measures would be implemented. The lack of targeted fiscal measures also disappointed investors, as recent monetary stimulus had only moderate success.

Hong Kong Stocks Fall, Tech Helps Limit Losses

Hong Kong’s Hang Seng index dropped 0.5% on Wednesday, continuing a nearly 10% decline from the previous session. Despite this, losses were limited by some strength in technology stocks. The Hang Seng had previously surged to a two-year peak earlier in October, driven by optimism over China. However, confidence waned, leading to steep losses and profit-taking.

Asian Stocks Buoyed by Tech

Broader Asian markets rose, primarily supported by gains in the tech sector. Japan’s Nikkei 225 increased by 0.7%, while the TOPIX index rose 0.1%. Retailer Seven & i Holdings Co., Ltd. rallied by 9.5% following reports of a higher bid from Alimentation Couche Tard Inc for the firm, although no substantial talks have occurred yet. Australia’s ASX 200 gained 0.2%, and India’s Nifty 50 index futures indicated a positive opening after recent stock declines. Investors are also focused on a Reserve Bank of India meeting where no rate changes are expected.