Asia markets fall as investors assess China’s stimulus vows after high-level economic meeting

Asia markets fell on Friday as investors assessed China’s stimulus vows to boost growth after a high-level economic meeting on Thursday, as reported by CNBC.

In Hong Kong, the Hang Seng Index dropped by 1.39%, while the CSI 300, which tracks major companies in mainland China, fell by 0.94%. Most markets in the Asia-Pacific region also saw losses, following the decline in Wall Street after a higher-than-expected producer price inflation report.

South Korea’s Kospi bucked the trend as it rose 0.23% while the smaller Kosdaq gained 1.01%. Kakao, an internet services company, saw its stock jump over 5%, and many of its subsidiaries posted large gains. Samsung Biologics, the fourth-largest company on the Kospi, also gained 3.6%.

In Japan, the Nikkei 225 dropped by 1.16%, while the broader Topix index saw a decline of 1.12%.

Investors also looked at the Bank of Japan’s Tankan survey, which revealed stronger-than-expected optimism among large Japanese manufacturers.

The Tankan index for large firms rose to 14 for the December quarter, up from 13 in September and above the 12 forecast by economists. The index measures business sentiment among large companies and helps the Bank of Japan shape its monetary policy. A higher number indicates more optimism than pessimism.

In Australia, the S&P/ASX 200 declined 0.69%. Meanwhile, India is set to release its wholesale inflation figures for November later in the day. Economists expect a slight drop in the rate, from 2.36% in October to 2.2%. Consumer inflation in India also eased from a 14-month high, according to data released on Thursday.

Overnight, all three major US indices posted losses. The Dow Jones Industrial Average dropped 0.53%, marking its sixth consecutive decline following a higher-than-expected inflation report.

The producer price index (PPI), which tracks wholesale inflation, rose by 0.4% in November, surpassing the 0.2% increase expected by analysts. Annually, the PPI increased by 3%, its largest jump since February 2023.

The Nasdaq also retreated 0.66%, falling below the 20,000 mark, while the S&P 500 lost 0.54%. /TISG

Read also: Singapore stocks fell as trading began on Friday—STI dropped 0.2%

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