In Asia, stock markets displayed a mix of results on Friday, with Chinese markets experiencing a decline as investors eagerly anticipated a crucial briefing on the upcoming stimulus plan scheduled for the weekend. Meanwhile, U.S. futures registered gains, while oil prices trended lower.
On Friday morning, Chinese stocks faced a downturn, with the Shanghai Composite dropping by 1.6% to 3,249.14, while the CSI 300 Index, comprising the top 300 stocks from the Shanghai and Shenzhen markets, saw a decline of 1.9%. Concurrently, Hong Kong markets were closed for a public holiday. Notable market volatility was observed, notably on Tuesday when the index recorded a significant drop of over 9%, marking its most substantial loss since the 2008 global financial crisis.
All eyes are on the upcoming briefing by China’s Ministry of Finance, set for the following day, where details of highly anticipated fiscal stimulus plans are expected to be revealed. Earlier in the week, disappointing details about economic stimulus plans from Beijing officials failed to meet market expectations, following previous announcements aimed at revitalizing the struggling property market and enhancing economic growth in late September.
Elsewhere, South Korea’s central bank announced a reduction of its benchmark interest rate by 25 basis points to 3.25% on Friday, signaling a shift towards an easing cycle to stimulate economic growth. The rate cut, the first since 2020, came in response to a contraction in gross domestic product in the second quarter and an inflation rate in September falling below the central bank’s target of 2%. In contrast, the Kospi in Seoul reported a 0.4% increase to reach 2,610.64, while Australia’s S&P/ASX 200 slid by 0.1% to 8,218.40.
In the U.S., stock markets retreated slightly from recent records due to reports indicating a slightly warmer inflation in the past month than expected and an increase in unemployment benefit claims. Amidst a backdrop of rising excitement over interest rate adjustments by the Federal Reserve to sustain economic growth, the stock market responded to lower-than-anticipated inflation figures and a higher number of unemployment filings.
The bond market experienced fluctuations in Treasury yields following the economic data release, with the 10-year Treasury yield holding steady at 4.07% and the two-year yield dropping to 3.96%. Additionally, U.S. benchmark crude oil and Brent crude prices dipped, while the dollar made marginal gains against the Japanese yen and the euro.
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Contributed by: [Reporter’s Name]
