Asian shares flat on China housing policy

by Jonathan Adams
Nikkei

Nikkei slid 0.6%, the Shanghai Composite was flat and Hong Kong’s Hang Seng shed a 2% gain to trade 0.6% higher

Asian shares gave back early gains on Thursday as a housing policy briefing in China underwhelmed investors, while the dollar sat near 2-1/2 month highs on the prospect of a Donald Trump presidency.

Global bonds were strong following a surprisingly large drop in British inflation and as the ECB is expected to make its first back-to-back rate cut in 13 years.

Results at chipmaking giant TSMC will be in focus, after a soft outlook from equipment supplier ASML that battered chip stocks.

Nikkei slid 0.6% and falling property shares in China unwound the wider market’s early-morning gains. The Shanghai Composite was flat and Hong Kong’s Hang Seng shed a 2% gain to trade 0.6% higher at 0325 GMT.

China’s CSI300 real estate index skidded 5% to shed two days of gains.

China’s housing minister promised to improve builders’ access to funding for finishing thousands of projects and the central bank’s deputy governor said cuts to down payments had already improved confidence and sales.

But there was no new gesture to excite markets about a meaningful revival for a sector where a clampdown on developers’ borrowing has set off a wave of defaults, while declining prices have shaken households’ faith in the asset class.

Property developer Sunac China, taking the recent rally as a cue to raise capital, helped to dampen the mood. Hong Kong-listed mainland developers were 3% lower.

Some investors took the opportunity to cash in on the good news today, leading to a pullback, said Kenny Ng, analyst at China Everbright Securities International.

Australian shares also dropped from a record high as mining stocks slid and iron ore prices declined in Singapore.

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of Trading and Investment News. The information provided on Trading and Investment News is intended for informational purposes only. Trading and Investment News is not liable for any financial losses incurred. Conduct your own research by contacting financial experts before making any investment decisions.

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