China's stocks rally fizzles as stimulus offer disappoints
Shanghai Composite up 4.6%, CSI300 up 5.9%
Hang Seng drops 9.4%; record fall in property stocks
Aussie dollar, iron ore, miners and luxury shares sink
Updates prices at 1040 GMT
By Samuel Shen and Tom Westbrook
SHANGHAI/SINGAPORE, Oct 8 (Reuters) -China's stock markets roared back from a week-long break to reach their highest levels in more than two years at the open, before paring gains after officials failed to inspire confidence in stimulus plans intended to revive the economy.
Hong Kong's Hang Seng index .HSI is the best performing major market this year, having seen its steepest rally in a generation over recent weeks, and continuing to post gains during the onshore holiday. But on Tuesday, it closed 9.4% lower - its heaviest fall since 2008.
Economic planner chairman Zheng Shanjie told reporters China was "fully confident" of achieving economic targets for 2024 and would pull forward 200 billion yuan ($28.36 billion) from next year's budget to spend on investment projects and support local governments.
But his failure to detail sufficiently big or new measures rekindled market doubts about Beijing's commitment to ensuring the world's second largest economy can climb out of its most serious slump since the global pandemic and reach 5% growth.
The Shanghai Composite .SSEC closed 4.6% higher while the blue-chip CSI300 .CSI300 rose 5.9% - big moves but below gains of more than 10% seen early in a rollercoaster day with turnover of a record 3.45 trillion yuan.
"Ultimately for the rally to be sustainable, we need to see more fiscal policy and more measures to support the economy and the property market," Vasu Menon, managing director of investment strategy at OCBC in Singapore, said.
"A great deal of hope has been built into the strong rally in recent weeks and we now need to see additional government policy action to support the uptrend."
China-exposed assets around the world were also caught up in the selling. The Australian dollar AUD=D3 fell 0.5% and the yuan CNY=CFXS headed for its sharpest drop in 10 months. MKTS/GLOBFRX/
Iron ore and other industrial metal prices slid, with the steel ingredient at one point down 5% in Dalian and London copper hitting its lowest in two weeks.IRONORE/MET/L
Global miners Rio Tinto RIO.AX and BHP BHP.AX fell in Australia, while, in Europe, miners .SXPP were down 4% on track for their biggest daily fall in 18 months and luxury stocks .STXLUXP tumbled.
FRENZY AND INDEX FUNDS
Before the Golden Week break, China announced the most aggressive stimulus measures since the pandemic and the CSI300 gained 25% over five sessions.
Flows on Tuesday were directed at broad index funds and pockets of the market expected to benefit from government largesse.
By midday, nearly 20 exchange-traded funds traded at a premium of more than 20% to the value of their assets, as funds rushed in faster than they could be rerouted to buy shares.
The record turnover shows "massive profit taking as well as fresh money inflow," Wen Hao, a veteran investor in the eastern Hangzhou city, said.
"It's still early stage of the bull market, and still a good time to buy stocks," he said, recommending small-caps that typically outperform blue-chips when the market is strong.
On Tuesday small companies outshone larger ones and the biggest gainers were tech hardware makers, brokers, health care companies and builders. Some of the biggest winners from last week became the biggest losers in Hong Kong.
The CSI semiconductor sub-index .CSI931865 surged 17% and a sub-index of brokers .CSI399975 was up 10.6%. Thematic indexes from biotechnology .CSI399993 to defence .CSI399813 and electric vehicles .CSI930997 rose more than 11%.
In Hong Kong, however, mainland property developers .HSMPI fell 15.5%, the biggest one-day percentage drop on record. Analysts said the selling reflected profit taking after a week of gains and balancing mainland moves, rather than a mood shift.
"The returns between Hong Kong and Chinese stocks remain largely parallel," said Sean Teo, sales trader at Saxo in Singapore.
"This underperformance may be due to some investors reallocating their funds from Hong Kong to Chinese markets, where government stimulus is more direct."
($1 = 7.0520 Chinese yuan renminbi)
China stocks rally strongly https://reut.rs/3ZQNtV0
China's benchmark stock index logs biggest daily gain since 2008 https://reut.rs/4dmrDfq
Reporting by Reuters' Shanghai newsroom. Additional reporting by Rae Wee, Ankur Banerjee and Vidya Ranganathan in Singapore, Gaurav Dogra in Bengaluru and Mai Nguyen in Hanoi. Writing by Tom Westbrook; Editing by Jamie Freed, Shri Navaratnam and Barbara Lewis
Asset collegati
Ultime news
Disclaimer: le entità di XM Group forniscono servizi di sola esecuzione e accesso al nostro servizio di trading online, che permette all'individuo di visualizzare e/o utilizzare i contenuti disponibili sul sito o attraverso di esso; non ha il proposito di modificare o espandere le proprie funzioni, né le modifica o espande. L'accesso e l'utilizzo sono sempre soggetti a: (i) Termini e condizioni; (ii) Avvertenza sui rischi e (iii) Disclaimer completo. Tali contenuti sono perciò forniti a scopo puramente informativo. Nello specifico, ti preghiamo di considerare che i contenuti del nostro servizio di trading online non rappresentano un sollecito né un'offerta ad operare sui mercati finanziari. Il trading su qualsiasi mercato finanziario comporta un notevole livello di rischio per il tuo capitale.
Tutto il materiale pubblicato sul nostro servizio di trading online è unicamente a scopo educativo e informativo, e non contiene (e non dovrebbe essere considerato come contenente) consigli e raccomandazioni di carattere finanziario, di trading o fiscale, né informazioni riguardanti i nostri prezzi di trading, offerte o solleciti riguardanti transazioni che possano coinvolgere strumenti finanziari, oppure promozioni finanziarie da te non richieste.
Tutti i contenuti di terze parti, oltre ai contenuti offerti da XM, siano essi opinioni, news, ricerca, analisi, prezzi, altre informazioni o link a siti di terzi presenti su questo sito, sono forniti "così com'è", e vanno considerati come commenti generali sui mercati; per questo motivo, non possono essere visti come consigli di investimento. Dato che tutti i contenuti sono intesi come ricerche di investimento, devi considerare e accettare che non sono stati preparati né creati seguendo i requisiti normativi pensati per promuovere l'indipendenza delle ricerche di investimento; per questo motivo, questi contenuti devono essere considerati come comunicazioni di marketing in base alle leggi e normative vigenti. Assicurati di avere letto e compreso pienamente la nostra Notifica sulla ricerca di investimento non indipendente e la nostra Informativa sul rischio riguardante le informazioni sopra citate; tali documenti sono consultabili qui.
