Asian shares slip as China optimism fades; RBA in focus
Asian equities fell on Tuesday as the spotlight remained on China and its efforts to stabilise its stuttering post-pandemic economy, while traders awaited the outcome of a policy meeting of the Reserve Bank of Australia.
MSCI's broadest index of Asia-Pacific shares outside Japan was 0.75% lower at 511.14, moving away from 515.37, the highest level since Aug. 11 it touched on Monday.
China shares clocked their best day in over a month on Monday on the back of fresh measures to help boost the faltering economy.
On Tuesday, China's blue-chip CSI 300 Index fell 0.40%, while Hong Kong's Hang Seng Index slipped 0.88%, giving back some of the gains.
A private-sector survey showed on Tuesday China's services activity expanded at the slowest pace in eight months in August as weak demand continued to dog the world's second-largest economy and stimulus failed to meaningfully revive consumption.
«The miss in China's Caixin services PMI has offset some of the sentiment shift we got yesterday,» said Charu Chanana, market strategist at Saxo in Singapore.
Investors are hoping that the drip feed of policy stimulus from Beijing will be enough to stabilise the Chinese economy.
«To be fair, China's measures so far are a mere relaxation of over-regulation that can merely stop or slow down further damage, and not particularly stimulus actions that can reverse the damage,» Chanana said.
«The hustle between weak high-frequency data and policy actions is likely to continue.»
Investor focus will also be on China's largest private property developer, Country Garden. The company faces a deadline for making interest payments on two U.S.
