Asian Stocks Edge Higher With China In Focus After Briefing Disappoints

Asian stocks edged higher in what will be a cautious session as investors were disappointed by China's policy briefing, while deflationary woes in the country worsened.

The Australian benchmark S&P ASX 200 was 21 points, or 0.25% higher at 8,234, while South Korea's Kospi was up 18 points or 0.66% at 2,615 as of 5:38 a.m. China’s yuan weakened against the US Dollar in early trading while Australian and New Zealand dollars also slipped.

The highly anticipated policy briefing headed by Finance Minister Lan Fo’an promised additional support for the property sector and signalled greater government borrowing. However, the policymakers refrained from issuing a price tag for the stimulus that investors were keenly expecting.

The rally in China is coming under pressure as authorities have failed to consistently meet the relief expectations. The benchmark The CSI 300 Index capped its biggest weekly loss since late July on Friday, according to Bloomberg.

Meanwhile, deflationary problems in the South Asian country worsened as consumers grew more cautious about spending. The consumer price index climbed 0.4% from last year while the core CPI rose 0.1% in September, the lowest since February 2021.

Producer inflation saw a decline for the 24th straight month to 2.8%, more than analysts expected, according to the data from National Bureau of Statistics on Sunday.

China's trade balance, Singapore's GDP, and the CPI print in India will be the data points to watch out for on Monday.

Elsewhere, the benchmarks in the US continued their record highs as banking stocks surged after a positive start to the earings season. The S&P 500 registered its 45th record this year on Friday.

The S&P 500 and Nasdaq Composite climbed 0.61% and 0.33%, respectively. The Dow Jones Industrial Average rose by 0.97%.

Crude oil prices declined on Monday while the US gears up to deploy an advanced anti-missile defence system to Israel to help retaliate against Iran.

Brent crude was trading 1.77% lower at $77.64 a barrel as of 5:55 a.m. IST. West Texas Intermediate was down 1.77% at $74.22.