Asian Markets Struggle as China’s Stimulus Falls Short
Most Asian stock markets fell on Monday, as China’s latest fiscal stimulus failed to meet expectations. Investors expressed disappointment over the country’s announcement of a 10 trillion yuan ($1.4 trillion) debt swap program intended to help local governments. However, the absence of direct fiscal stimulus and targeted measures for the housing market and consumer spending left many investors unsatisfied. This comes as recent data revealed that deflation remains a concern in China, with the Consumer Price Index (CPI) slowing and the Producer Price Index (PPI) shrinking for the 25th consecutive month.
China’s Economic Slowdown Weighs on Regional Markets
Chinese stock indexes, including the Shanghai Shenzhen CSI 300 and Shanghai Composite, fell 0.6% and 0.2%, respectively. Hong Kong’s Hang Seng Index was the worst performer, dropping 2.4%. The continued deflation in October further dampened sentiment, with analysts noting that China’s economic struggles are exacerbated by trade uncertainties linked to the U.S. presidential election.
Japan and Other Markets Under Pressure
Japan’s Nikkei 225 and TOPIX indexes dropped by about 0.3%, influenced by uncertainty surrounding interest rates. The Bank of Japan has delayed rate hikes due to political uncertainty and economic challenges. Broader Asian markets, including Australia’s ASX 200 and South Korea’s KOSPI, also saw losses, with technology stocks particularly hit in South Korea.
Looking Ahead
With U.S. inflation data and Federal Reserve commentary due this week, regional markets will likely continue reacting to global economic signals.
For further reading, you can check out the following sources:
- China's Deflationary Concerns and Economic Outlook
- Bank of Japan's Interest Rate Policy and Economic Impact
- Hong Kong Stock Market Performance Amid Chinese Economic Struggles


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