Asian markets decline as Chinese economic conference falls short of expectations

Asian equities dropped on Friday, with traders disappointed by the lack of specific details from China’s Central Economic Work Conference, as well as a weakening risk appetite 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, News.Az reports, citing Bloomberg.

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.

An index of dollar strength was little changed, largely holding on to gains from the previous five sessions. The stronger dollar was helped along by higher Treasury yields. Australian and New Zealand yields rose Friday.

In Japan, confidence among large firms remained upbeat, broadly in line with the Bank of Japan’s view ahead of a policy meeting next week that’s dividing analyst opinions over whether a rate hike is coming.

South Korea’s equity benchmark climbed, briefly recovering from all the losses triggered by President Yoon Suk Yeol’s failed bid to impose martial law. More than eight members from South Korea’s ruling People Power Party support Yoon’s impeachment motion, Munhwa Ilbo newspaper reported Friday. The won was little changed.

Shares of data center operator DigiCo Infrastructure REIT slumped as much as 10% in their A$2 billion ($1.3 billion) debut in Sydney on Friday, with market watchers citing valuation concerns.

In India, government data showed India’s inflation cooled last month, bringing some relief to the newly-appointed central bank chief.

Elsewhere in Asia, data set for release Friday includes industrial production in Japan and gross international reserves for Thailand. Money supply data for China may be released any time through Dec. 15.

News.Az