Asian stocks experienced fluctuations, oscillating between gains and losses, as investors grappled with forming a unified opinion on China’s vague promises of extensive economic stimulus announced over the weekend.
During a key press conference on Saturday, China’s Finance Minister Lan Foan committed to a “significant increase” in debt but did not provide specifics regarding the total amount of the stimulus. This omission left investors in the dark about the potential duration of the ensuing stock market rally.
Hong Kong’s market started the day lower, showing volatility in early trading, in stark contrast to the robust beginnings seen in mainland Chinese markets.
The Hang Seng Index closed down 0.4%, while the CSI300 blue-chip index saw a rise of 1.5%. The Shanghai Composite Index posted a gain of 1.7%.
Both onshore and offshore property stocks managed to secure strong gains, spurred by hopes that the new stimulus measures might support China’s struggling property sector.
The Hang Seng Mainland Properties Index rose by 1.4%, and the CSI300 Real Estate Index surged by 4.1%.
This resulted in a mixed scenario for MSCI’s broadest index of Asia-Pacific shares outside Japan, which slightly increased by 0.1%. Trading volumes in Asia were lower on Monday, affected by a holiday in Japan.
