Chinese markets rallied on Monday after the central bank announced fresh stimulus to boost the economy, and expectations build that more could be on the way.
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The Shanghai Composite Index climbed 2.3 per cent to 3,338.07, its highest closing level since August 21.
The Bloomberg Commodity Index dropped 0.1%.
The latest data from the General Administration of Customs of China showed Chinese exports fell 1.1% in yuan terms from a year earlier in September, after a 6.1% decline on year in August. Dabur India (down 2.64%), Godrej Consumer Products (down 2.54%), Britannia Industries (down 2.09%), Nestle India (down 2.33%), Tata Global Beverages (down 1.93%), Bajaj Corp (down 2.02%), Marico (down 0.97%), Jyothy Laboratories (down 1.03%), GlaxoSmithkline Consumer Healthcare (down 0.25%) and Colgate Palmolive (India) (down 0.36%) edged lower. “More decisive policy easing is needed to counter deflation risks”.
Hong Kong stocks fall today, tracking global markets, as a two-week rebound that lifted the benchmark Hang Seng Index by 10% showed signs of sputtering out.
A Hong Kong-based external spokeswoman for Huarong declined to comment. Industrial and Commercial Bank of China, China Construction Bank, AIA Group, Hong Kong Exchanges and Clearing, and Bank of East Asia were all down.
MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 1.0 percent from their two-month high touched on Monday. Australia’s S&P/ASX 200 fell 0.2 percent to 5,195.10.
“China remains a source of market debate, the bears see a hard landing as inevitable, the bulls continue to see bright spots here and there, and have an unrelenting belief that the PBOC will be the shining white knight riding in with a rate slashing sword to save the day”, Lucas wrote in a note to clients on Wednesday.
In midday deals, London’s benchmark FTSE 100 index shed 0.71 percent to 6,297.50 points compared with Tuesday’s close, as Chinese fears eclipsed news that Britain’s jobless total has struck a seven-year low.
Earlier on Wednesday, the Monetary Authority of Singapore said that it will ease its monetary policy for the second time this year by slowing the pace of the Singapore dollar’s appreciation. Shares of Treasury Wine Estates also entered a trading halt after the company agreed to buy the majority of Diageo Plc’s USA and United Kingdom wine operations for a cash consideration of $552 million.
An unexpectedly weak U.S.jobs report for September had led many investors to speculate that the Fed will not deliver its first hike since 2006 this year.
China’s central bank guided the yuan traded on the mainland stronger for the seventh straight day against the United States dollar.
Bets on the Federal Reserve boosting borrowing costs at its October meeting slid to just 4 percent and odds of an increase before the end of the year are now 27 percent. China Merchants Energy Shipping Co. and Sinotrans & CSC Holdings Co. were up 4.5% and 0.6%.
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Tokyo shares closed 1.11pc lower while Hong Kong lost 0.47pc in late trade.
