Shares in China slumped on Wednesday (October 9, 2024), as details of economic stimulus plans from officials in Beijing failed to live up to investors' expectations, while other markets in Asia rose.

Stocks in Hong Kong fluctuated between gains and losses, with the Hang Seng Index falling by 2.4 per cent to 20,418.61. This decline followed a plunge of over 9 per cent on Tuesday as traders sold off shares after recent rallies.

“A lack of new stimulus has been the cause of disappointment, with many market participants hoping that its fiscal policies will follow in the footstep of the financial bazooka' delivered in late-September, but there was clearly a step-down in yesterday's announcement,” Yeap Jun Rong of IG said in a commentary.

The Shanghai Composite lost 5.1 per cent to 3,311.02 after it gained 4.6 per cent Tuesday, reopening from a national holiday. The CSI300 Index, which tracks the top 300 stocks traded in the Shanghai and Shenzhen markets, gave up 5.6 per cent.

“Let's call it what it is — an abject failure — as Chinese shares opened sharply lower, sending a clear signal that the market is no longer buying half-hearted promises,” Stephen Innes of SPI Asset Management said in a commentary.

In Tokyo, the Nikkei 225 index advanced 0.6 per cent to 39,178.70. Shares of the Japanese retailer Seven & Holdings soared more than 10 per cent in early trading after media reported that Canadian convenience store operator Alimentation Couche-Tard had increased its takeover bid by about 20 per cent.

Japan's Parliament was due to be dissolved on Wednesday (October 9, 2024) to pave the way for a general election. Prime Minister Shigeru Ishiba is seeking to consolidate support after taking office last week, amid signs the Liberal Democrats' ruling coalition remains shaky after Ishiba's predecessor, Fumio Kishida, stepped down following a slew of scandals among the party's lawmakers.

Australia's S&P/ASX 200 gained 0.2 per cent at 8,189.70. South Korea's markets were closed for a public holiday.

On Tuesday (October 8, 2024) the S&P 500 rallied 1 per cent to 5,751.13. The Dow Jones Industrial Average rose 0.3 per cent to 42,080.37, while the Nasdaq composite led the way with a 1.4 per cent rally to 18,182.92.

The 10-year Treasury yield edged down to 4.02 from 4.03 per cent late Monday. The two-year yield, which more closely tracks expectations for what the Federal Reserve will do with overnight interest rates, slipped to 3.96 per cent from 3.99 per cent, late Monday, though it's still near its highest level since August.

When Treasurys are paying higher yields, investors generally become less willing to pay very high prices for stocks and other investments. And Treasury yields had been storming higher over the last week following a suite of reports showing the US economy remains healthier than expected.

Such reports, including one last week showing stronger hiring by US employers than forecast, raise hopes that the economy will avoid a recession. But they also force traders to ratchet back expectations for how much the Federal Reserve will cut interest rates by, now that it has widened its focus to include keeping the economy humming instead of just fighting high inflation.

Oil prices extended gains as Hezbollah fired another barrage of rockets into Israel on Tuesday which heightening concerns over escalating tensions in the Middle East. Benchmark US crude oil added 24 cents to USD 73.81 per barrel. Brent crude, the international standard, rose 12 cents to USD 77.30 per barrel.

In currency trading, the US dollar edged up to 148.21 Japanese Yen from 148.20 Yen. The Euro fell from USD 1.0983 to USD 1.0970.