Chinese shares fluctuated in a volatile session after a Finance Ministry briefing at the weekend underwhelmed investors and a drop in factory prices reinforced concerns about the economy.
Onshore equities swung between gains and losses while Hong Kong shares dropped along with US stock futures. China’s yuan weakened against the greenback, as did the Australian and New Zealand dollars. Oil declined after China’s briefing lacked new incentives to boost consumption in the biggest importer.
While China’s Finance Minister Lan Fo’an vowed more support for the real estate sector at the keenly anticipated weekend briefing, he did not produce a headline monetary stimulus figure, disappointing some investors. The focus is now turning to the next major policy briefing in the coming weeks from the Communist Party-controlled parliament that oversees the budget for details of more support.
Investors definitely have to be a lot more patient when it comes to the size of the fiscal stimulus package, said Carlos Casanova, senior Asia economist at Union Bancaire Privee SA. I think we will get some numbers possibly before the end of the month, but officials in Beijing probably aren’t adopting a whatever-it-takes stance to rescue the economy.
Before the weekend briefing, money managers had been waiting for more fiscal measures to help sustain the rally sparked by the stimulus blitz that authorities unleashed in late September.
