Asian Stocks Gain While China Slumps As Stimulus Disappoints
Equity benchmarks in the US closed near all-time highs after the technology heavyweights powered stocks higher.
Most stocks in the Asia-Pacific region were trading higher on Wednesday, tracking an overnight rally on Wall Street as information technology companies lifted the benchmarks.
Chinese stocks snapped a 10-day winning streak as investors were disappointed by the lack of any anticipated big measures to revive the economy, raising concerns if the bull run will be sustained.
The Japanese benchmark Nikkei 225 was 306 points, or 0.8% higher at 39,213, while Australia's S&P ASX 200 was up 12 points or 0.15% at 8,188 as of 8:02 a.m.
China's benchmark equity index—CSI 300—fell as much as 5% during opening. The stock market in China was less frantic than the previous session after the country’s economic planning agency disappointed traders without a big liquidity stimulus to revive the economy.
Meanwhile, FTSE said it added South Korea to its benchmark bond index. The index provider also added India to its gauge of emerging market debt.
Gains in Asia stocks come when two central banks in the region will decide on the key policy rates. The Reserve Bank of New Zealand will announce the crucial decision and is likely to quicken the pace of monetary policy easing, Bloomberg News reported. The Reserve Bank of India is likely to maintain the status quo for the tenth time.
Equity benchmarks in the US closed near all-time highs after the technology heavyweights powered stocks higher. The Bloomberg gauge of the 'Magnificent Seven' megacaps climbed 1.7%.
The Federal Open Market Committee minutes, due Wednesday, will provide insight into the degree of consensus behind September's 50 basis-point rate cut.
Wall Steet posted gains amid growing expectations of a small rate cut in the November Fed meeting. The 10-year Treasury yields were little changed at 4.02% on Tuesday.
The S&P 500 and Nasdaq Composite advanced 0.97% and 1.45%, respectively. The Dow Jones Industrial Average climbed by 0.30%.
Crude oil prices steadied after tumbling the most in almost a year on Tuesday. Brent crude was trading 0.28% higher at $77.40 a barrel as of 5:57 a.m. IST. West Texas Intermediate was up 0.29% at $73.78.
