Asian stocks slide with China in the lead; Nikkei loses steam By Investing.com
[ad_1]
© Reuters.
Investing.com– Most Asian stocks sank on Friday with Chinese markets leading losses on resurgent concerns over a slowing economy, while a rally in Japan’s Nikkei 225 ran dry after strong inflation data.
Global markets were caught off guard by an unexpected interest rate cut by the Swiss National Bank. The move sparked outsized flows into the , pressuring risk-driven assets outside the U.S.
This saw Asian markets largely disregard a strong lead-in from Wall Street, which closed at record highs on Thursday. U.S. stock futures also trimmed early gains and traded sideways in Asian trade.
Chinese stocks tumble as fiscal revenue falls, stimulus cheer wanes
China’s and indexes slid 1.6% each on Friday, and were among the worst performers in Asia. Losses in technology and mainland stocks dragged Hong Kong’s index down 2.6%.
All three indexes were set for weekly losses after Friday’s dip, which came without any clear catalysts. But signs of slowing economic growth and disappointing stimulus measures continued to trickle in.
Government data showed China’s fiscal revenues fell 2.3% in the first two months of 2024, while the People’s Bank of China said it still had room to cut its – providing more monetary stimulus. But monetary stimulus measures have so far provided little support to the Chinese economy.
Nikkei rally cools after brief burst above 41,000; CPI rises
Japan’s index was flat on Friday after briefly rising as much as 1% to a record high above 41,000 points.
But gains in the Nikkei were short-lived as data showed Japanese (CPI) inflation grew sharply in February. The reading came just days after a historic interest rate hike from the Bank of Japan, and lent further credence to the BOJ’s hawkish outlook.
Analysts at Citi said the Nikkei was likely to remain rangebound around 41,000 points, amid a dearth of immediate catalysts for a push higher, as well as an eventual tightening in policy by the BOJ.
Broader Asian markets retreated. Australia’s fell 0.5% after rising to near record highs earlier in the week.
Losses in heavyweight technology stocks pulled South Korea’s 0.4% lower.
for India’s index pointed to a muted open, after the index rebounded sharply from recent losses on Thursday. The Nifty was set to open above the 22,000 level.
[ad_2]
Source link
© Reuters.
Investing.com– Most Asian stocks sank on Friday with Chinese markets leading losses on resurgent concerns over a slowing economy, while a rally in Japan’s Nikkei 225 ran dry after strong inflation data.
Global markets were caught off guard by an unexpected interest rate cut by the Swiss National Bank. The move sparked outsized flows into the , pressuring risk-driven assets outside the U.S.
This saw Asian markets largely disregard a strong lead-in from Wall Street, which closed at record highs on Thursday. U.S. stock futures also trimmed early gains and traded sideways in Asian trade.
Chinese stocks tumble as fiscal revenue falls, stimulus cheer wanes
China’s and indexes slid 1.6% each on Friday, and were among the worst performers in Asia. Losses in technology and mainland stocks dragged Hong Kong’s index down 2.6%.
All three indexes were set for weekly losses after Friday’s dip, which came without any clear catalysts. But signs of slowing economic growth and disappointing stimulus measures continued to trickle in.
Government data showed China’s fiscal revenues fell 2.3% in the first two months of 2024, while the People’s Bank of China said it still had room to cut its – providing more monetary stimulus. But monetary stimulus measures have so far provided little support to the Chinese economy.
Nikkei rally cools after brief burst above 41,000; CPI rises
Japan’s index was flat on Friday after briefly rising as much as 1% to a record high above 41,000 points.
But gains in the Nikkei were short-lived as data showed Japanese (CPI) inflation grew sharply in February. The reading came just days after a historic interest rate hike from the Bank of Japan, and lent further credence to the BOJ’s hawkish outlook.
Analysts at Citi said the Nikkei was likely to remain rangebound around 41,000 points, amid a dearth of immediate catalysts for a push higher, as well as an eventual tightening in policy by the BOJ.
Broader Asian markets retreated. Australia’s fell 0.5% after rising to near record highs earlier in the week.
Losses in heavyweight technology stocks pulled South Korea’s 0.4% lower.
for India’s index pointed to a muted open, after the index rebounded sharply from recent losses on Thursday. The Nifty was set to open above the 22,000 level.
About The Author
