Asia Stocks Rise With China Property Stimulus
Most Asian stocks rose on Thursday, although Chinese shares heavily curbed their gains after a briefing on more support for the property market underwhelmed.
Technology stocks were also mostly upbeat in anticipation of strong earnings from chipmaking giant TSMC (TW:2330), due later in the day.
Regional markets took a positive lead-in from Wall Street, where a recovery in tech stocks and some positive earnings helped elicit a positive session on Wednesday.
U.S. stock index futures fell slightly in Asian trade, with focus squarely on more upcoming earnings and economic readings.
Chinese stocks cull gains as property briefing underwhelms.
China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes both heavily trimmed early gains, trading about 0.1% higher going into the midday break. Hong Kong’s Hang Seng index fared marginally better, rising 0.8%.
China’s housing ministry said it will roll out increased support for the property market, including a bigger whitelist of property developers with easy access to government funding,But the briefing failed to inspire increased confidence over new measures, especially as the briefing lacked key details.
The briefing is the latest in a series of high-profile briefings from the Chinese government, which began in late-September, as Beijing began rolling out more supportive measures for the economy.
But a recent briefing on planned fiscal measures had somewhat underwhelmed markets, as China’s finance ministry did not specify the size or timing of the planned measures.
Still, Chinese stocks were sitting on stellar gains since late-September on increased optimism over a Chinese economic recovery.
Gross domestic product data for the third quarter is due on Friday and is set to offer more cues.
Market focus was squarely on an upcoming third-quarter earnings print from TSMC, the world’s biggest contract chipmaker, which is due later in the day. Taipei shares of the firm- which is considered as a bellwether for chipmaking and tech, fell 1%.
Broader Asian markets were mostly positive. Optimism over more stimulus measures in China saw Australia’s ASX 200 rise 1% to a record high of 8,384.50 points.
Investors also cheered signs of resilience in the Australian economy following hotter-than-expected labor data, although the trend also ties into a hawkish outlook for the Reserve Bank of Australia.
Japan’s Nikkei 225 index was an outlier, falling 0.6% after data showed the country logged a bigger-than-expected trade deficit in September. Japan’s export growth slowed amid weakness in top market China.
Japan's TOPIX was flat, with focus on a consumer inflation reading due Friday.Cay)
Source: Investing.com
