Shares in China tumbled as Beijing’s economic stimulus plans fell short of investors’ expectations. The Shanghai Composite dropped 5.1% to 3,311.02, after gaining 4.6% on Tuesday when markets reopened following a national holiday.
The CSI300 Index, tracking the top 300 stocks on the Shanghai and Shenzhen markets, fell by 5.6%. Meanwhile, Hong Kong stocks fluctuated between gains and losses, with the Hang Seng Index dropping 2.4% to 20,418.61. This followed a sharp 9% decline on Tuesday, its steepest since 2008, as traders sold off shares following recent rallies.
Stephen Innes of SPI Asset Management commented: “Let’s call it what it is — an abject failure — as Chinese shares opened sharply lower, signaling that the market is no longer buying into half-hearted promises.”
In Tokyo, the Nikkei 225 advanced 0.6% to 39,178.70, with shares of retailer Seven & i Holdings surging over 10% after reports that Canadian convenience store operator Alimentation Couche-Tard raised its takeover bid by about 20%.
Japan’s parliament was expected to be dissolved on Wednesday, clearing the way for a general election. Prime Minister Shigeru Ishiba, who took office last week, is seeking to strengthen his position amid concerns over the ruling Liberal Democratic Party’s stability following scandals involving former leader Fumio Kishida.
Australia’s S&P/ASX 200 edged up 0.2% to 8,189.70, while South Korean markets remained closed for a public holiday.
On Wall Street, gains in tech giants like Nvidia and Apple helped lift major indices, despite weakness in oil and mining stocks. The Dow Jones Industrial Average climbed 0.3% to 42,080.37, the S&P 500 gained 1% to 5,751.13, and the Nasdaq Composite rose 1.5% to 18,182.92.
Yields on benchmark 10-year US Treasury notes slipped to 4.02% from 4.1% late on Monday.
