Asian Stocks Move Lower

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Asian Stocks Move Lower

Asian Stocks Move Lower Over China Stimulus

Uncertainty remains the dominant theme for today as most Asian stocks are drifting lower. This comes after the recent US inflation report has casted doubts in the future rate cuts. Also, the investors were unimpressed with the Chinese stimulus measures.

Most Asian are down for the day and even extending their losses. This comes as the US inflation has proven to be stickier than expected. On top of that, there's uncertanity about the rate cuts while the China's stimulus package is also shrouded in uncertanity.

Shenzhen Csi 300 Down By 0.2%

It appears that the regional markets are taking cues from the US stock markets. And in the USA, the risk-on mode is driving the stocks higher.

With the US CPI in line with the forecast, now everyone is waiting for the Powell comments. Just a week ago, the Fed lowered the policy rate and kept its approach based on data.

In China, the Shanghai Composite Index is down by 0.2%, while the Shenzhen CSI 300 has also moved lower. Meanwhile, the Hang Seng Index is down by 0.8% for the day.

Recently, Tencent Holdings Ltd also announced positive earnings, which failed to impress Hong Kong stocks. However, the Tencent stock gained 1% during the session.

The overall sentiment is weak as the latest fiscal package from China was underwhelming. Now, investors wants a targetted and bigger package to boost the property market and private spending.

The PBoC will be announcing its decision on loan prime rate during the next week. However, experts believe that the chances of a rate cut are very slim.

At the same time, Trump plans to impose tariffs on Chinese goods. The tariff rate on China will be higher than the rest of the world.

ASX 200, which is a key market from Asia, has also gained 0.3% on the comments from the RBA governor. According to RBA, there's no chance of short-term policy easing but the inflation is slowly going down.

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