Asia Mixed as Investors Focus on China Congress – Asia Market Wrap

Asian shares were mixed Tuesday as investors considered China’s official pronouncements, which included an aggressive 5% growth objective.

Mainland China’s markets surged, and Japan’s Nikkei 225 index surpassed the 40,000 level it achieved on Monday. The Hong Kong Hang Seng Index sank alongside benchmarks in South Korea and Australia. US market futures moved lower after the S&P 500 fell slightly on Monday.

China’s National People’s Congress has issued a flurry of statements, including targets for 5.5% urban unemployment and 3% inflation, as well as measures to boost the economy, which is plagued by a property downturn and entrenched deflation. Investors and analysts reacted sceptically to the proposals in the absence of any major fiscal stimulus package.

According to persons acquainted with the subject, Hong Kong’s Hang Seng Tech index plummeted up to 4%, owing in part to a new US government prohibition on Advanced Micro Devices selling an artificial intelligence processor specialised for the Chinese market.