China Rally Fades – Asia Market Wrap

As investors awaited further information on the anticipated stimulus and the probable unwinding of bullish wagers placed last week, shares in China and Hong Kong pared their initial spike. According to Citi, before the Politburo’s announcements, investors were more positive on the country’s stocks.

The Australian dollar fell intraday after the Reserve Bank of Australia held interest rates on hold, as expected, but said it is becoming more confident that inflation pressures are lessening.

Elsewhere in Asia, Korean stocks were poised for their first day gain since last week’s brief martial emergency plunged the country into political chaos. The Justice Ministry has prohibited President Yoon Suk Yeol from travelling abroad, citing a series of investigations that put the embattled leader in danger of imprisonment over his hasty declaration of military control.

In the United States, the S&P 500 fell from virtually overbought technical levels on Monday, following a string of all-time highs, as traders awaited key inflation data that will help define the Federal Reserve’s monetary policy outlook. Nvidia fell after China launched an investigation into allegations that the US chipmaker violated antitrust laws in connection with a 2020 transaction