Investing.com-- Most Asian stocks rose on Wednesday with technology shares tracking gains in their U.S. peers, while Chinese markets fell sharply as investors were disappointed by a lack of details on more stimulus measures.
Regional markets took a positive lead-in from Wall Street, as a rally in technology stocks helped spark overnight gains.
But U.S. stock index futures were muted in Asian trade, with focus turning to more cues on the Federal Reserve and inflation, which are due in the coming days. Bets on a slower pace of U.S. rate cuts had dented stock markets at the beginning of the week.
Chinese stocks slide as stimulus rally fizzles
China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes were by far the worst performers on Wednesday, falling more than 4% each from two-year highs.
Chinese markets had risen sharply on Tuesday as trade resumed after the Golden Week holiday, and as investors cheered a slew of stimulus measures announced by the government in late-September.
But the stock rally fizzled out by the end of Tuesday, especially as China’s top economic regulator gave scant cues on how the new stimulus measures- which include proposed rate cuts, lower reserve requirements and more liquidity support- will be implemented.
Markets were also disappointed by a lack of targeted fiscal measures, which Beijing has largely declined to implement despite repeated calls from investors.
The measures announced in late-September were all geared toward monetary stimulus, which Beijing has repeatedly rolled out over the past two years, to middling effect.
Hong Kong stocks fall, tech helps limit losses
Hong Kong’s Hang Seng index fell 0.5% on Wednesday, extending a nearly 10% slide from the prior session, although further losses were limited by some resilience in technology stocks.
The Hang Seng is one of the best-performing stock markets this year, having surged to a two-year peak earlier in October on optimism over China.
But waning confidence in the country sparked steep losses on Tuesday, with investors also locking in a measure of recent profits.
Asian stocks buoyed by tech
Broader Asian markets rose on Wednesday, buoyed chiefly by gains in the tech sector.
Japan’s Nikkei 225 added 0.7%, while the TOPIX index rose 0.1%.
Retailer Seven & i Holdings Co., Ltd. (TYO:3382) rallied as much as 9.5% after Bloomberg reported Canada’s Alimentation Couche Tard Inc (TSX:ATD) had offered a substantially higher bid for the firm- about 7 trillion yen ($47 billion), after the 7-Eleven operator rejected an earlier approach. But the higher offer- which was made last month- had still not yielded any substantial talks.
Australia’s ASX 200 rose 0.2%, while futures for India’s Nifty 50 index pointed to a positive open, after Indian stocks stemmed an extended stock rout on Tuesday.
Focus is also on a Reserve Bank of India meeting later in the day, where the central bank is widely expected to keep rates unchanged.