China’s Stocks Rise on Fiscal Pledge, Nikkei Drops – Asia Market Wrap
February 1, 2024
China equities rose after an official hinted at prospective expenditure plans, while shares in other Asian markets slumped following weak US earnings reports and Federal Reserve pushback on interest-rate lowering expectations.
China’s CSI 300 rebounded from a four-day low, while Hong Kong’s Hang Seng Index rose following a two-day fall. The Caixin manufacturing PMI indicator came in as expected, in expansion zone, and a Beijing official stated that the government would set a “reasonable” investment target.
Shares in Australia and Japan fell after the S&P 500 plummeted 1.6%, the most since September. Aozora Bank plunged 21% in Tokyo after announcing losses related to US commercial property, mirroring the woes of New York Community Bancorp in America.
Contracts for US stocks crept higher, with Nasdaq 100 futures outperforming, after Big Tech heavyweights such as Microsoft and Alphabet led losses on Wall Street Wednesday. European contracts have declined.
