- US Supreme Court to hear 'ghost guns' regulation case
- 'Small' oil leaks detected in Samoa after NZ navy shipwreck
- Nobel literature jury may go for non-Western writer
- At Istanbul church, blessed spring offers hope to Christians and Muslims
- From Bolivia to Indonesia, deforestation continues apace
- Myanmar to send rep to regional summit for first time in three years
- Prabowo set to lead bolder Indonesia on world stage
- Tampa zoo rushes Chompers the porcupine and others to safety as Milton nears
- Shanghai stocks pare early surge on stimulus worries amid Asia retreat
- New Japan PM to hold talks on ASEAN sidelines
- Record number of climbers chase 14-peak dream in Tibet
- Former South Korea clinic for US 'comfort women' to be demolished
- China holds off on fresh stimulus but 'confident' will hit growth target
- Chiefs battle past Saints to stay unbeaten
- Deal on climate aid hangs in balance at UN COP29 summit
- Royals hit back against Yankees, Tigers maul Guardians
- German suspect in 'Maddie' case faces verdict in sex crimes trial
- Top economic official 'confident' China will hit 2024 growth target
- COP29 fight looms over climate funds for developing world
- Shanghai stocks soar to extend stimulus rally amid Asia-wide drop
- Australia moves to expand Antarctic marine park
- Tragedy of Madrid street sweeper highlights how heatwaves kill
- Survivors wait for aid as Trump's lies help cloud Helene response
- Fleeing Israeli bombs, Lebanon's displaced met with suspicion
- Jila Mossaed, from refugee poet to Swedish Academy
- Will Tesla's robotaxi reveal live up to hype?
- Drugs, people smuggling at heart of Mexico's raging violence
- 'Invisibility' and quantum computing tipped for physics Nobel
- Musk says he is 'all in' on Trump in US election
- Category 5 Hurricane Milton roars towards storm-battered Florida
- Carpenter bomb stuns Guardians as Tigers level series
- Harris, Trump and Biden mark Oct. 7 attacks as US election looms
- Oil prices extend gains on Mideast tensions, Wall Street falls
- US judge orders Google to open Android to rival app stores
- On attacks anniversary, Israel fights 'sacred' multi-front war
- Nobel scientist uncovered tiny genetic switches with big potential
- Grammy-winning Cissy Houston, mother of Whitney, dies at 91
- UN biodiversity summit in Colombia aims to turn words into action
- Georgia Supreme Court reinstates six-week abortion ban
- 'Dark day': Victims mourned around the globe on Oct. 7 anniversary
- On attacks anniversary, Israel fights multi-front war
- Mexican mayor murdered days after taking office
- Intensifying to Category 5, Hurricane Milton targets Florida
- Mission to probe smashed asteroid launches despite hurricane
- Biden, Harris mark Oct. 7 with call for Mideast peace
- Dupont set for Toulouse return after post-Olympic holiday
- French rugby bosses tighten discipline after nightmare Argentina tour
- Oil prices extend gains on Mideast tensions, Wall Street slips
- Visitors to get rare view of Rome's Trevi Fountain
- Europe's asteroid mission Hera launches despite hurricane
SCS | -0.15% | 12.95 | $ | |
RBGPF | 100% | 60.52 | $ | |
RYCEF | -0.15% | 6.87 | $ | |
AZN | -0.78% | 76.87 | $ | |
NGG | -1.56% | 65.48 | $ | |
CMSC | -0.53% | 24.57 | $ | |
BTI | -0.26% | 35.2 | $ | |
RIO | -0.11% | 69.62 | $ | |
GSK | -0.49% | 38.63 | $ | |
BP | 0.78% | 33.14 | $ | |
BCE | -0.54% | 33.53 | $ | |
JRI | -0.76% | 13.18 | $ | |
RELX | -0.54% | 46.04 | $ | |
VOD | 0.31% | 9.69 | $ | |
BCC | 1.68% | 141.27 | $ | |
CMSD | -0.09% | 24.79 | $ |
Shanghai stocks pare early surge on stimulus worries amid Asia retreat
Mainland Chinese markets rallied Tuesday but were well off their morning highs, while Hong Kong tumbled as traders were left disappointed by a lack of detail on Beijing's raft of economic stimulus announced last month.
Shanghai and Shenzhen started the day on a blistering note -- piling on more than 10 percent -- as they reopened after a week-long holiday that had interrupted a rally sparked by a string of announcements by policymakers aimed at kickstarting growth.
But investors pared those gains as a much-anticipated news conference Tuesday morning -- in which there were hopes for more meat on the plans or another round of pledges -- failed to provide much detail.
Zheng Shanjie, head of China's National Development and Reform Commission (NDRC), said the government was "fully confident" it will achieve its goal of around five percent growth this year -- a target analysts say is optimistic.
That gave traders little reason to press on with a market rally that has seen Hong Kong, Shanghai and Shenzhen bound more than 20 percent higher since the first batch of measures were announced.
By the break, Shanghai was up just 4.8 percent and Shenzhen 7.7 percent, while Hong Kong tanked more than five percent.
Oil, which has been boosted by hopes for a recovery in the world's number two economy, sank more than one percent. Uncertainty over China has offset worries about a regional war in the Middle East as Israel considers its response to Iran's missile attack last week.
"After what was hyped as the 'mother of all catch-up bounces', China's markets rally has hit a wall, leaving investors deflated," said independent analyst Stephen Innes.
"The reopening surge from the week-long holiday barely had time to gather steam before fizzling out, and now the once-thrilled bulls are licking their wounds," he wrote in his Dark Side of the Boom newsletter.
"With fresh stimulus nowhere in sight, the rally has stalled, and the euphoric 'Dragon Boat' ride has taken a sharp U-turn."
Investors have been racing back into mainland and Hong Kong stocks since authorities last month began announcing plans to reverse a long period of tepid economic growth.
Among the measures unveiled were interest rate cuts, an easing of how much banks must keep in reserve and relaxed rules on buying a home.
The markets have been under intense pressure in recent years as traders fretted over government crackdowns on multiple sectors, with property and tech among those most badly affected.
Most of the pledges were aimed at providing much-needed support to the real estate market, which is a major driver of growth but has been battered by a debt crisis at some of the country's biggest developers.
Heron Lim, at Moody's Analytics, said: "Judging from comments in the press conference, we think that the third quarter will be soft for China but there's enough in the stimulus announced so far to boost fourth-quarter figures enough to reach the annual 2024 growth target.
"Market hopes of even more fiscal stimulus that reaches the 'big bang bazooka' level look dashed... with few details on specific measures."
The big losses in Hong Kong led the rest of Asia lower with Tokyo, Sydney, Seoul, Singapore, Taipei, Wellington, Manila and Mumbai all in the red.
The selling also came after Wall Street's three main indexes closed down around one percent or more as forecast-busting US jobs data Friday dealt a blow to hopes for a second successive 50-basis-point rate cut.
While the news soothed any worries that the economy could be in danger of slipping into recession, the prospect of borrowing costs coming down slower than thought led to some investors cashing out after last week's record highs.
Close attention will be paid to US consumer prices Thursday and producer prices the following day.
- Key figures around 0400 GMT -
Shanghai - Composite: UP 4.8 percent at 3,496.82 (break)
Hong Kong - Hang Seng Index: DOWN 5.6 percent at 21,810.00 (break)
Tokyo - Nikkei 225: DOWN 1.1 percent at 38,897.04
West Texas Intermediate: DOWN 1.5 percent at $76.00 per barrel
Brent North Sea Crude: DOWN 1.4 percent at $79.78 per barrel
Dollar/yen: DOWN at 147.94 from 148.13 yen on Monday
Pound/dollar: UP at $1.3095 from $1.3084
Euro/dollar: UP at $1.0985 from $1.0973
Euro/pound: UP at 83.89 pence from 83.86 pence
New York - Dow: DOWN 0.9 percent at 41,954.24 (close)
London - FTSE 100: UP 0.3 percent at 8,303.62 (close)
W.Lapointe--BTB