Mainland Chinese stocks surged following an extended break, but gains fell short of their morning highs.
The optimism failed to spread to other regional markets, as Beijing offered few new details on its large-scale stimulus efforts. In particular, Hong Kong stocks plummeted on Tuesday, reversing some of the gains made during China’s week-long National Day holiday.
China’s CSI300 blue-chip index initially soared 10% in early trading, reaching its highest level since July 2022, while the Shanghai Composite Index also jumped by a similar amount, hitting its strongest point since December 2021.
However, Hong Kong’s Hang Seng Index dropped 7.6%, with the Hang Seng Mainland Properties Index plunging more than 10%.
The sharp losses in Hong Kong dragged down the rest of Asia, with markets in Tokyo, Sydney, Seoul, Singapore, Taipei, Wellington, Manila, and Mumbai all turning negative.
In the U.S., the Dow Jones Industrial Average declined by 0.9% to 41,954.24, the S&P 500 fell 1% to 5,695.94, and the Nasdaq Composite dropped 1.12% to 17,923.90.
In the bond market, the yield on 10-year U.S. Treasury bonds rose to 4.03% from 3.97% late on Friday.
