Hong Kong’s Hang Seng index tumbled 0.6%, Nikkei 225 index dropped 1%, while the TOPIX declined 1.1%
Most Asian stocks dropped on Wednesday, tracking losses in Wall Street as a post-election rally now seemed to be cooling, while anticipation of key U.S. inflation data also spurred risk aversion.
Regional markets remained under pressure after fresh fiscal measures from China largely underwhelmed, while uncertainty over what a Donald Trump presidency will entail for Sino-U.S. relations and global trade also weighed.
U.S. stock index futures dropped in Asian trade after a negative session on Wall Street, as stock benchmarks declined from record highs after a strong run-up in the past week. Wall Street had rallied sharply in the wake of a Trump victory in the 2024 presidential election.
Some hawkish commentary from Fed officials also weighed on sentiment, as Minneapolis Fed President Neel Kashkari warned that any increases in inflation could see the Federal Reserve keep rates steady in December.
Focus was now squarely on CPI data due later on Wednesday, which is expected to show U.S. inflation remained sticky in October.
Shanghai Shenzhen CSI 300 and Shanghai Composite indexes kept to a tight range on Wednesday, while Hang Seng index tumbled 0.6%.
All three indexes were nursing some losses in recent sessions after China’s plans for 10 trillion yuan ($1.4 trillion) in additional debt largely underwhelmed.
Investors were now holding out for more fiscal measures aimed at improving consumer spending and supporting the property market. Bloomberg reported China was considering cutting homebuying taxes to support the property sector.
Analysts said Beijing was likely seeking more cues on Trump’s policies towards the country, given that he has vowed to raise trade tariffs on Chinese imports.
China is expected to outline more fiscal stimulus during two high-level political meetings in December.
Wider Asian markets largely pulled back on Wednesday, as anticipation of the U.S. CPI figures spurred risk aversion. Markets were also looking to an address by Fed Chair Jerome Powell later this week.
Nikkei 225 index dropped 1%, while the TOPIX declined 1.1%. Technology investing giant SoftBank Group Corp. skidded 0.6% even as it clocked a much stronger-than-expected profit for the September quarter.
KOSPI was battered by extended losses in chipmaking stocks, with heavyweight Samsung Electronics Co Ltd slipping to a four-year low on concerns over U.S. trade tariffs under Trump. Samsung has also largely lagged its rivals in tapping into increased memory chip demand from the AI boom.
ASX 200 slipped 1% on losses in bank and mining stocks, while futures for Nifty 50 index pointed to a weak open, after the index tumbled 1% in the earlier session.
