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Updates with India open, China context
Investing.com-- Most Asian stocks advanced on Thursday, tracking an extended recovery in Wall Street as investors bought back into technology shares amid growing conviction the U.S. Federal Reserve will cut interest rates next month.
Chinese shares were buoyed by bets on more stimulus measures from Beijing, amid renewed concerns over a property market crisis in the country. But losses in property stocks, especially China Vanke, limited overall gains in Chinese bourses.
Asian markets took positive cues from Wall Street, which rose on Wednesday for a fourth consecutive session. S&P 500 Futures were flat by 23:10 ET (04:10 GMT).
Renewed confidence in a December interest rate cut by the Fed buoyed stock markets, as did a rebound rally in technology.
China shares rise with property crisis, stimulus in focus
China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes rose between marginally on Thursday, while Hong Kong’s Hang Seng added 0.4%.
Hong Kong’s Hang Seng was pressured by losses in Alibaba Group (HK:9988), Baidu Inc (HK:9888), and BYD (HK:1211), after a report said the U.S. government considered adding the three to its list of firms with ties to the Chinese military.
Mainland markets were buoyed by some strength in technology and industrial stocks. But losses in property shares limited overall gains, amid renewed concerns over a debt crisis in the real estate sector.
China Vanke (SZ:000002) fell over 6% in Shenzhen trade, as investors dumped its bonds on doubts over whether the company will be able to meet its debt obligations. The company is seeking bondholder approval to delay payments on several notes.
The move is a first for the company, while a debt restructuring in Vanke could be the worst yet default in China’s beleaguered property market.
Broader property stocks also fell, with Sunac China Holdings Ltd (HK:1918) and China Overseas (HK:0688) down more than 1% each in Hong Kong trade.
Property market ructions come after a slew of middling readings on the Chinese economy in recent months. This in turn added to bets that Beijing will unlock more stimulus to help support the economy.
Reports last week said China was considering more stimulus for the property market, amid an at least four-year downturn in the sector. Beijing was also seen considering more consumer subsidies and other measures to boost spending.
Asia stocks buoyed by tech; S.Korea rises after BOK hold
Broader Asian stocks advanced, with tech-heavy bourses continuing to lead gains on a rebound in the sector. Broader sectors were also cheered by increasing bets that the U.S. Fed will cut interest rates in December.
South Korea’s KOSPI was a top performer, adding 1.3% after the Bank of Korea left interest rates unchanged, as widely expected. But the decision was far from unanimous, with BOK policymakers split over cutting rates further.
Japan’s Nikkei 225 index added 1.3%, while the TOPIX rose 0.5%, also taking support from tech shares. Sentiment towards Japan was somewhat aided by the U.S. attempting to temper heightened diplomatic tensions between Tokyo and Beijing.
Tech conglomerate SoftBank Group Corp. (TYO:9984) jumped 3.6%, extending a rebound from over two-month lows hit earlier this week.
Australia’s ASX 200 index was flat, lagging its peers amid persistent concerns that the Reserve Bank of Australia will not cut interest rates further. Said concerns grew following stronger-than-expected inflation data for October.
Singapore’s Straits Times index rose 0.3%, while India’s Nifty 50 index rose 0.3% in early trade.
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