Hong Kong stocks led the decline in Asia as Beijing’s latest stimulus measures fell short of investor expectations, overshadowing Wall Street’s record highs from Friday.
Bitcoin surged to a new record high, fueled by Donald Trump’s US presidential victory and the election of pro-crypto candidates to Congress, raising hopes for a more lenient regulatory approach.
The world’s largest cryptocurrency surged by up to 6.1% on Sunday, reaching a new all-time high before peaking at an unprecedented $81,899 overnight. The rally was fueled by the Republicans nearing a sweep of both houses of Congress and reclaiming the White House with their candidate.
The dollar remained close to last week’s four-month high against major currencies as traders braced for a key US consumer inflation report and a series of speeches from Federal Reserve officials, including Chair Jerome Powell on Thursday.
The Hang Seng index in Hong Kong fell 1.9%, with a sub-index of mainland Chinese property stocks plunging 3.3%.
Chinese blue-chip stocks showed volatility, edging up 0.2% after an earlier decline of 1.6%.
The widespread market weakness highlights ongoing concerns about the outlook for the world’s second-largest economy, following Beijing’s unveiling of a 10 trillion yuan (£1.1 trillion) plan to address local government debt risks without introducing new fiscal stimulus.
Japan’s Nikkei remained flat, recovering from minor early losses, while South Korea’s Kospi index dropped 0.8%.
Australia’s main stock index fell 0.4%, dragged down by commodity stocks, after declines in oil and industrial metal prices.
