HONG KONG — Stocks in China fell on Wednesday, with Shanghai’s benchmark down 6.6% and Hong Kong’s losing 1.5%, as investors dumped shares to hold on to gains following recent rallies driven by hopes of big economic stimulus .
Other Asian markets rose, while US futures fell. Oil prices rose.
Details of economic stimulus measures Officials in Beijing’s plans have failed to live up to lofty expectations that emerged after the central bank and other government agencies announced several policies to revive the ailing real estate market and spur faster economic growth.
The measures announced in late September sparked a rally that has since fizzled out. A Treasury press conference scheduled for Saturday could provide further details on government spending, which has so far fallen short of what investors had hoped for.
The Shanghai Composite lost 6.6% to 3,258.86 after gaining 4.6% on Tuesday when it reopened after a weeklong national holiday. The CSI300 Index, which tracks the top 300 stocks trading in the Shanghai and Shenzhen markets, lost 6.2%.
The benchmark in the smaller market in Shenzhen fell 8.1%.
Hong Kong’s Hang Seng index lost 1.6% to 20,593.98. That followed a decline of more than 9% on Tuesday.
“A lack of new stimulus was behind the disappointment, with many market participants hoping that fiscal policy would follow in the footsteps of the financial ‘bazooka’ released at the end of September, but there was a clear step back in yesterday’s announcement. IG’s Yeap Jun Rong said in a commentary.
The Shanghai Composite is still up 5.2% from a year ago and more than 10% in the past three months. Hong Kong’s index rose almost 18% from a year earlier.
In Tokyo, the Nikkei 225 index rose 0.9% to 39,277.96. Shares of Japanese retailer Seven & i Holdings rose 4.7% after media reported that Canadian supermarket chain Alimentation Couche-Tard had increased its sales. takeover bid by about 20%.
Japan’s parliament was expected to be dissolved on Wednesday to pave the way for a general election. Prime Minister Shigeru Ishiba is trying to consolidate support after taking office last week, amid signs that the ruling Liberal Democrats coalition remains shaky after Ishiba’s predecessor, Fumio Kishida, resigned following an election victory. a whole series of scandals among the party’s lawmakers.
The Australian S&The P/ASX 200 gained 0.1% to 8,187.40. The South Korean markets were closed for a holiday.
On Tuesday the S&The P500 rose 1% to 5,751.13. The Dow Jones Industrial Average rose 0.3% to 42,080.37, while the Nasdaq composite led the way with a 1.4% rally to 18,182.92.
The yield on ten-year government bonds fell to 4.02 from 4.03% at the end of Monday. The two-year yield, which more closely reflects expectations of what the Federal Reserve will do with overnight rates, fell to 3.96% from 3.99% late Monday, although it is still near the highest level since August.
When government bonds pay higher yields, investors are generally less willing to pay very high prices for stocks and other investments. And Treasury yields had soared over the past week following a series of reports showing the U.S. economy remains healthier than expected.
Such reports, including one shown last week stronger hiring by American employers than expected, raise hopes that the economy will avoid a recession. But they also force traders to adjust expectations about the level of the Federal Reserve will lower interest ratesnow that it has broadened its focus keep the economy going instead of ordinary fight against high inflation.
Oil prices extended their gains Hezbollah fired another barrage of rockets to Israel on Tuesday, increasing concerns about escalating tensions in the Middle East. Benchmark U.S. crude rose 54 cents to $74.11 a barrel. Brent crude, the international standard, rose 64 cents to $77.82 a barrel.
In currency trading, the US dollar rose from 148.20 yen to 148.38 Japanese yen. The euro fell from $1.0959 to $1.0970.
