The rally in Chinese markets subsided on Tuesday following a briefing by the National Development and Reform Commission that lacked substantial details on additional stimulus measures the market had hoped.
In contrast, Hong Kong’s Hang Seng index initially dropped by over 10%, ultimately settling 9% lower. Meanwhile, the Shanghai Composite managed to close 4.59% higher for the day, despite experiencing over a 10% surge in the early trading hours. CSI 300 index, which surged at the same magnitude of Shanghai index pared gains to close at 5.93%.
Across other Asia-Pacific markets, a mostly downward trend was observed on Tuesday as investors monitored Japan’s August pay and spending data. Household spending in Japan saw a 1.9% year-on-year decline in real terms in August, which was less severe compared to the anticipated 2.6% drop according to Reuters’ economist poll.
This decline marked the fastest plummet since January’s 6.3% year-on-year fall.
Meanwhile, real wages saw an increase in August, rising by 2% to an average of 574,334 yen ($3,877.44) as per data from the country’s statistical bureau. The benchmark Nikkei 225 in Japan slipped by 1% post the release to close at 38,937.54.
Similarly, South Korea’s Kospi edged down by 0.61%, settling at 2,594.36, influenced in part by heavyweight Samsung Electronics’ worse-than-expected third-quarter guidance. In Australia, the S&P/ASX 200 also experienced a decline of 0.35% to close at 8,176.9.
