Asian stocks fell in a decline led by Chinese tech companies as investors reset expectations for a stimulus from China after a key meeting Friday ended with little detail on a package. A gauge of the region’s equities dropped 0.9% as benchmarks in mainland China and Hong Kong declined alongside Japanese and South Korean shares. Australian stocks were clear outliers, climbing around 0.6%. US stock and bond markets are closed Monday for a holiday. Reports covering China’s State Council meeting chaired by Premier Li Qiang were light on details about any potential stimulus or timing. Instead, media stated China must adopt “more forceful” measures and respond in a timely manner to support the economic recovery. The lack of tangible evidence for support appears to unnerve investors who had bid up Chinese equities last week in the hope of a sweeping package that would support infrastructure and the ailing property market. Instead, Goldman Sachs Group Inc. cut its forecast for Chinese growth, citing limited options to boost stimulus. Support for property would likely be targeted and moderate, economists for the bank said. Chinese tech platforms were among the hardest hit companies with Alibaba Group Holding Ltd, Meituan and Baidu Inc. all tumbling around 4% to drag the Hang Seng Tech index as much as 2.7% lower. The offshore yuan fell, while the Australian dollar reversed an early gain to fall alongside the New Zealand dollar. The yen traded flat after reversing an early decline that at one point touched levels not seen since November last year. An index of the dollar bounced back Monday after suffering its worst week since January. China is set to cut its one and five year loan prime rates in decisions expected Tuesday, according to economist forecasts, after the country reduced a key lending rate last week. Elsewhere, chipmaker stocks were also under pressure. Samsung and SK Hynix fell following a decline for US-traded Micron Technologies on Friday after it warned that about half of its sales tied to China-headquartered clients may be affected by a Chinese cybersecurity probe. Fed Chair Jerome Powell will give his semi-annual report to Congress on Wednesday. Federal Reserve Bank of St. Louis President James Bullard and his counterparts in New York and Chicago are all set to speak in the week ahead. Other key central bank developments in the week ahead include policy meetings in Turkey, the UK and Switzerland.
Nikkei -1.01% Hang Seng -1.22% CSI -0.71% Shanghai -0.41% Shenzen +0.02%
Eur$ 1.0934 CNH 7.1494 CNY 7.1475 JPY 141.52 GBP 1.2812 CHF 0.8944 RUB 83.9125 TRY 23.62 WTI$ 70.75 -1.45% Gold 1,957 -0.05% BTC 26,416 -0.21% ETH 1,723 -0.40%
S&P -0.02% Nasdaq +0.09% EuroStoxx -0.58% FTSE -0.38% Dax -0.59% SMI -0.39%
Macro :
- Spain-France Hydrogen Link Poised to See EU Funding
- Citi Strategists Say S&P 500’s Move Above 4,400 Is ‘Unloved’
- Goldman Says Markets Too Optimistic on Pace of US Inflation Drop
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