Investing.com

Most Asian markets fell on Tuesday, tracking overnight weakness in Wall Street as strength in the U.S. job market drove bets that interest rates will remain relatively high.

Chinese markets surge on stimulus cheer

Chinese markets vastly outperformed their peers, rising sharply as trade resumed after a week and as investors reacted to a barrage of stimulus measures from Beijing. The Shanghai Shenzhen CSI 300 and Shanghai Composite indexes rose between 6% and 8% in early trade after opening up as high as 13%.

Trade resumed after the Golden Week holiday, leading to increased buying into Chinese markets following significant stimulus announcements aimed at boosting economic growth. Chinese officials are expected to hold a briefing later on Tuesday to outline further stimulus measures.

Before the Golden Week holiday, the Chinese government implemented several stimulus strategies, including interest rate cuts, reduced reserve requirements for banks, looser property market rules, and market liquidity measures, which stimulated broader buying activity due to a notable drop in benchmark indexes to a seven-month low in September. However, investors remain on the lookout for targeted fiscal initiatives.

Asian stocks slip amid rate uncertainty and tech losses

In contrast, broader Asian markets fell on Tuesday, reflecting overnight weakness in Wall Street. U.S. stocks experienced significant declines on Monday, driven by positive labor market indicators, which suggested a slowed rate of cuts by the Federal Reserve.

Technology stocks faced the most substantial losses, particularly after major U.S. tech companies, including Alphabet Inc, Apple Inc, and Amazon.com Inc, reported declines. Hong Kong’s Hang Seng index dropped nearly 4% amid profit-taking after reaching over one-year highs fueled by optimism regarding Chinese stimulus measures.

Japan’s Nikkei 225 fell 1.2%, while the TOPIX index lost 1.1%. Data indicated a slowdown in wage growth in August, but robust household spending in Japan may support inflation expectations. South Korea’s KOSPI decreased by 0.7%, burdened by a 1.5% decline in Samsung Electronics following the company’s forecast of disappointing third-quarter profits. Meanwhile, Australia’s ASX 200 index saw limited losses due to optimism about Chinese economic engagement, with data also showing an increase in Australian consumer sentiment in October.