The Hang Seng Index was down 0.41%, the CSI300 blue-chip index gained 1.52% and the Shanghai Composite Index added 1.66%
Asian stocks wavered between gain and loss on Monday as investors struggled to reach a consensus view on China’s broad economic stimulus promises made over the weekend which were light on specifics.
Minister of Finance Lan Foan at a news conference on Saturday pledged to “significantly increase” debt, but left investors guessing on the overall size of the stimulus, a detail needed to gauge the longevity of a stock market rally.
Most onshore investors believe Beijing’s decision to restructure local government and housing debt using central government funds is more significant than many foreign investors believe, Morgan Stanley analysts said in a client note.
The divergence was apparent on Monday, after shares in Hong Kong opened lower and were choppy in early trade, contrasting sharply with their mainland Chinese peers which got off to a strong start.
The Hang Seng Index was down 0.41%, while the CSI300 blue-chip index gained 1.52%. The Shanghai Composite Index added 1.66%.
Property stocks onshore and offshore, however, eked out solid gain as investors bet the latest stimulus measures could aid China’s ailing property sector.
The Hang Seng Mainland Properties Index gained 1.37%, while the CSI300 Real Estate Index jumped 4.1%.
The mixed picture left MSCI’s broadest index of Asia-Pacific shares outside Japan up a marginal 0.12%, with trading in Asia thinned on Monday given a holiday in Japan.
U.S. stock futures similarly edged lower, with S&P 500 futures losing 0.06% while Nasdaq futures fell 0.18%.
EUROSTOXX 50 futures and FTSE futures eased 0.06% and 0.13%, respectively.
Also in a blow to China’s growth outlook, consumer inflation unexpectedly declined in September while producer price deflation deepened, data on Sunday showed.
Reflecting the lingering concerns over the Chinese economy, the onshore yuan slid 0.12% to 7.0750 per U.S. dollar, while its offshore counterpart declined 0.18% to 7.0830 per dollar.
