Asia shares fall on China weakness

Asian stocks edged lower on Wednesday, tracking weakness in China as investors remained cautious ahead of a closely watched US election that could impact the global economy.

The MSCI broadest index of Asia-Pacific shares outside Japan fell 0.22 per cent in early trade, mirroring a decline in Chinese assets. The CSI300 blue-chip index shed 0.16 per cent, while Hong Kong’s Hang Seng Index slid 0.64 per cent.

The weakness came despite news that China is considering issuing more than 10 trillion yuan ($1.4 trillion) in additional debt in the coming years to stimulate its slowing economy. However, analysts expressed concerns about the effectiveness of the stimulus package, with a large portion allocated to local government debt relief.

Meanwhile, the upcoming US election continues to cast a shadow on market sentiment. Investors fear potential trade disruptions if the upcoming US elections result in a Republican sweep.

However, there were some bright spots. Japan’s Nikkei rose nearly 1 per cent, buoyed by a weaker yen. Bitcoin also hovered near its all-time high, fuelled by optimism surrounding a potential Donald Trump victory, perceived as positive for digital assets.

Brent crude futures increased 0.42 per cent to $71.42 per barrel, and US West Texas Intermediate crude futures rose 0.45 per cent to $67.51 per barrel.

Spot gold was up 0.18 per cent to $2,779.81 an ounce, reaching a peak of $2,781.69 earlier in the session.

Attribution: Reuters

Subediting: Y.Yasser