Asia Stocks Climb on Tech Gains, While China’s Momentum Fades as Stimulus Optimism Dims

Most Asian stocks experienced an uptick on Wednesday, driven by technology shares that mirrored gains in their U.S. counterparts. However, Chinese markets saw significant declines as investor optimism was dampened by insufficient details regarding new stimulus measures.

Regional markets were buoyed by a positive performance on Wall Street, where a rally in technology stocks spurred overnight gains. Nevertheless, U.S. stock index futures showed little movement during Asian trading, with investors looking ahead to forthcoming insights on the Federal Reserve and inflation expected in the coming days. Earlier in the week, expectations for a slower pace of U.S. interest rate cuts had negatively impacted stock markets.

### Chinese Stocks Decline Amidst Fizzling Stimulus Hopes

China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes were among the hardest hit on Wednesday, each falling more than 4% from two-year peaks. Shortly after trade resumed post-Golden Week holiday, Chinese markets had surged on the back of a series of stimulus measures announced by the government in late-September.

However, enthusiasm waned by the end of Tuesday as the country’s top economic regulator provided minimal guidance on the implementation of the proposed stimulus measures, which include anticipated rate cuts, lower reserve requirements, and enhanced liquidity support. Investor disappointment was further exacerbated by the absence of targeted fiscal initiatives, which the government has largely refrained from introducing despite ongoing calls from the market. The late-September measures primarily focused on monetary stimulus and have yielded mixed results over the past two years.

### Hong Kong Stocks Decline, Tech Sector Eases Losses

The Hang Seng index in Hong Kong dropped 0.5% on Wednesday, extending a nearly 10% slide from the previous session, although losses were mitigated somewhat by stability in technology stocks. The Hang Seng had been one of the year’s top-performing markets, peaking earlier in October amid optimism regarding China. However, eroded confidence in the country contributed to significant losses, with investors also cashing in on recent profits.

### Broader Asian Markets Gain, Led by Tech Sector

On the whole, Asian markets enjoyed a positive session on Wednesday, primarily influenced by advances in the tech industry. Japan’s Nikkei 225 climbed 0.7%, while the TOPIX index increased by 0.1%.

Retailer Seven & i Holdings saw a notable rise, surging as much as 9.5% after reports indicated that Canada’s Alimentation Couche Tard had made a significantly higher bid—around 7 trillion yen ($47 billion)—for the company, despite the initial offer being rejected. However, the latest offer, made last month, has not led to substantial negotiations.

In Australia, the ASX 200 index rose 0.2%, and futures for India’s Nifty 50 index suggested a positive opening following an end to a prolonged stock decline on Tuesday. Attention also turned to an upcoming meeting of the Reserve Bank of India, where it is widely anticipated that the central bank will maintain current interest rates.