Asian equities fell Friday as a lack of details from a Chinese economic conference disappointed some traders and risk appetite weakened ahead of next week’s Federal Reserve meeting.
A gauge of Asian stocks is headed for the worst week in nearly a month, with Japanese and Australian shares falling after selling on Wall Street Thursday.
The S&P 500 ended 0.5% down as traders weighed higher-than-expected jobless claims against too-hot producer price data.
Shares in China and Hong Kong slipped following a readout from China’s Central Economic Work Conference that lacked policy details of a fiscal stimulus even as authorities vowed to boost consumption.
But their vow to cut policy rates as well as banks’ reserve ratios sent the Chinese 10-year government bonds to slide below 1.8% for the first time in history. Investors now must wait until March for more clarity.
“The market may have some hope that the CEWC would give more details on consumption stimulus and property inventory clearance packages, but the turnout was a bit disappointed,” said Jason Chan, senior investment strategist of Bank of East Asia. “Investors may need to wait for more fiscal policy rollout in the first quarter.”
