HONG KONG: Stocks in mainland China and Hong Kong fell Wednesday (Oct 9) in a volatile start a day after Beijing left investors disappointed over a lack of fresh stimulus and scant detail on its plans for implementing a raft of measures already unveiled.
After blockbuster performances in the wake of last month's announcements to kickstart growth, traders were left deflated Tuesday after a news conference that fell short of expectations and revived worries about the outlook.
A rally on Wall Street, helped by a plunge in oil prices and optimism over the US economy, did little to lift sentiment on Chinese trading floors, though most other markets in Asia enjoyed gains.
Investors are now keeping tabs on developments out of Beijing, hoping for more indications about officials' plans, though analysts warn there is unlikely to be the big "bazooka" stimulus akin to the support seen during the global financial crisis.
Shehzad Qazi at China Beige Book said the news conference "underscored that Beijing does not feel the need to do 'whatever it takes'.
"Instead it's opting for targeting stimulus -- including allocating funds for projects previously announced. The irony is markets would've continued rallying had there been no press conference.
"The only upside of (Tuesday's) event was injecting a much needed dose of reality."
Hong Kong had soared more than 20 per cent between the first batch of measures being announced and Monday, but it collapsed more than nine per cent Tuesday -- its worst day since 2008.
It extended losses Wednesday as traders struggled to get back on track.
Shanghai fell more than three per cent -- having seen a 10 per cent opening rally Tuesday pared to just over four per cent.
Still, most other markets in the region rose as investors took their lead from New York, where tech firms led the way on optimism over the world's top economy in the wake of Friday's forecast-topping jobs data.
Tokyo rose, with Seven & i Holdings -- the owner of the 7-Eleven convenience store chain -- piling on more almost five per cent after a report said Canada's Alimentation Couche-Tard had hiked its takeover offer for the company by almost 20 per cent to US$47.2 billion.
Sydney, Singapore, Taipei, Wellington and Jakarta also rose, though Manila dipped.
While the US jobs figures dented expectations for a second successive bumper interest rate cut this month, they did temper worries about a possible recession.
US consumer and producer prices data towards the end of the week should provide further clues on the interest rate outlook, while third-quarter earnings season kicks off on Friday.
Oil prices inched up but made little headway into the losses of almost five percent suffered in the previous session that came on the back of doubts about Chinese demand and after Israel faced international pressure not to strike Iranian crude installations.
Fears about Tel Aviv's response to Iran's missile attack last week had sent the commodity soaring Monday to their highest levels since August.
Healthy US stockpiles and expectations of ample supply both in and out of OPEC also weighed on the black gold. - AFP
