Asian Stocks Slide as China Stimulus Disappoints; Shigeru Ishiba Secures the Majority Vote

In Tokyo, Japan stocks rose on Monday, with the Nikkei 225 gaining 0.18%. Top performers included DeNA Co Ltd (+17.28%), Furukawa Electric Co., Ltd. (+14.80%), and Fujikura Ltd. (+6.41%).

 

 

On the downside, Isuzu Motors, Ltd. (-5.29%), Kawasaki Heavy Industries, Ltd. (-5.11%), and Secom Co., Ltd. (-4.97%) saw declines.

 

In currency markets, USD/JPY was up 0.49% at 153.38, while EUR/JPY rose 0.51% to 164.44.

 

Exciting news from Japan includes the recent Special National Diet election results, where LDP President Shigeru Ishiba secures the majority vote in the Senate Prime Minister nomination.

 

Hong Kong stocks led the decline in Asia on Monday following China's underwhelming stimulus measures, overshadowing Wall Street's record highs. The Hang Seng (HSI) dropped by 1.9%, with mainland Chinese property shares plummeting by 3.3%. Chinese blue chips (CSI300) were more volatile, initially down 1.6% before recovering slightly to trade 0.2% higher.

 

 

 

After Chinese markets closed on Friday, the National People's Congress Standing Committee announced a 10 trillion yuan ($1.39 trillion) debt package to alleviate local government financing pressures and stabilize economic growth. However, the measures did not include a direct injection of funds into the economy, disappointing some investors who were expecting more substantial support, especially given concerns about potential tariffs under the incoming Trump administration.

 

Australia's benchmark index (AXJO) fell by 0.4%, dragged down by commodity stocks amid weakening oil and industrial metals prices.

 

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