Investing.com — Most Asian stocks rose Tuesday, following record highs on Wall Street as third-quarter earnings season approached, while Chinese shares fell amid waning optimism over new fiscal stimulus.
Regional markets have taken positive cues from Wall Street, with profits in financial and technology stocks hitting new highs. US stock index futures were slightly positive in Asian trading, with focus shifting this week to a set of key third-quarter earnings results.
Chinese markets underperformed their peers following weak inflation and trade data over the past two days. The announcement of new fiscal stimulus from Beijing also provided only fleeting support, as the government left investors lacking some key details.
Nikkei crosses 40k, ASX 200 hits record high
Japanese shares were the best performers in Asia after posting strong gains after a long weekend.
It rose 1.7% and crossed the 40,000 point mark for the first time since mid-July, while adding 1%. The gains were largely focused on technology stocks, especially chipmakers, which followed the gains of their U.S. counterparts.
Sentiment towards Japanese markets was also supported by reports that Tokyo Metro raised $2.3 billion in the country’s biggest initial public offering in six years.
Australia rose 0.9% to a record high of 8,327.60 points, with major mining companies BHP Group Ltd (ASX:) and Rio Tinto Ltd (ASX:) each up more than 1% ahead of their quarterly production reports due later this week to appear.
Australian markets benefited from a global boost in economically sensitive sectors, which are expected to benefit as interest rates fall.
In broader Asian markets, South Korea added 0.2%, while Indian index futures pointed to a slightly negative open as Indian inflation for September came in higher than expected. Still, the Nifty managed to close above 25,000 points on Monday.
Chinese stocks lag as stimulus rally fades
China’s indexes and indexes moved from flat to low on Tuesday, while Hong Kong’s index fell 0.5%.
Chinese markets posted strong gains on Monday as investors cheered the prospect of more stimulus in the country, especially after the Treasury Department outlined plans for fiscal stimulus in a recent briefing.
But the Ministry of Finance has still left out important details about its plans, especially the scope and timing of the planned fiscal measures. The lack of direct support for private consumption also disappointed investors.
Weak economic data from China also negatively affected sentiment towards the country. Data on Monday showed the country’s growth was less than expected as growth slowed sharply. Previous data showed that Chinese disinflation is still playing a role.
