Chinese equities were standout underperformers in Asia Wednesday as traders weighed weak economic data and Beijing’s reluctance to commit to more stimulus.
The benchmark CSI 300 Index tumbled as much as 7.4%, but regained some of its losses on a report China will hold a briefing on Saturday about fiscal policy.
Chinese markets had surged Tuesday when they returned from the Golden Week holiday. US equity futures also slipped following a report that the US Justice Department was weighing a breakup of Google.
Ten-year Treasury yields hovered around the key 4% mark and oil steadied after tumbling the most in more than a year. Concerns in China have mounted that the latest burst of stimulus may be insufficient to convince investors of a sustainable rally in the equity market.
Chinese tourists shelled out less money during their long holiday while a news report indicated the nation needs to introduce policies to stabilize growth and expectations. That’s a further sign Beijing is attempting to build confidence among investors.
