Asian Markets Were Mixed Amid Chinese Fiscal Spending Optimism

 

Asian markets varied on Wednesday (Dec. 18). The regional sentiment was boosted by China's plan to increase fiscal spending but reduced by caution about the incoming Fed's rate decision. Overnight decline on Wall Street promoted divergence in Asian markets.

 

Chinese markets outperformed, with the mainland's Shanghai Composite Index and Hong Kong's Hang Seng Index rising 0.62% and 0.83%, respectively. A Reuters report suggested that Beijing plans to raise its 2025 budget deficit target from 3% to 4% of GDP, echoing the expansionary fiscal policy and fueling hopes for a pickup in China's economy. China will also offer more stimulus by issuing debts.

 

Japan's markets were more subdued as investors awaited the Bank of Japan's rate decision. The Nikkei 225 slipped 0.72% though Nissan Motor (TYO: 7201) and Mitsubishi Motors Corporation (TYO: 7211) surged 23.70% and 19.65%, respectively. Nissan and Honda (NYSE: HMC) had a merger plan that could reshape the global auto industry.

 

South Korea’s KOSPI gained 1.12% as acting President Han Duck-soo stabilized markets following the impeachment of President Yoon Suk Yeol.

 

Meanwhile, Australia’s S&P/ASX 200 edged down 0.06%. As of press time, FTSE Bursa Malaysia KLCI rises 0.14%; Singapore’s Straits Times Index falls 0.46%.