Asian stocks hit by rate-cut uncertainty, middling China GDP; Nikkei rises
Investing.com-- Most Asian stocks fell on Wednesday as Federal Reserve officials downplayed expectations for early interest rate cuts, while economic growth figures from China largely underwhelmed markets.
But Japanese shares traded positive, with local indexes briefly notching new 34-year highs on hopes that monetary conditions in the country will remain ultra-loose.
China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes fell between 0.7% to 1%, as the country’s fourth-quarter gross domestic product grew slightly less than expected, at 5.2%.
Losses in mainland stocks dragged Hong Kong’s Hang Seng index down 3%, as did weakness in heavyweight technology shares.
Annual GDP growth came in at 5.2%, beating Beijing’s 5% target for 2023. But a bulk of this growth was driven by a lower base for comparison from 2022.
Wednesday’s figures showed that Asia’s largest economy was still struggling to shore up growth from COVID-era lulls, amid persistent pressure from weak consumer spending, sluggish private investment and an ongoing property sector crisis.
The reading bodes poorly for broader Asian markets, given China’s dominance as a trading partner for the region. Australia’s ASX 200 fell 0.2%, while Indonesian stocks led losses in Southeast Asia with a 0.4% decline.
Regional technology stocks were the worst performers for the day, with losses in tech heavyweights dragging South Korea’s KOSPI and Hong Kong’s Hang Seng down between 2% and 3%.
Futures for India’s Nifty 50 index also pointed to a weak open, with the country’s major tech stocks set to track weakness in their Asian peers. Indian markets were also vulnerable to profit-taking after surging to record highs earlier this week.
Traders were seen pricing in a
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