Asian Stocks Move in Flat-to-Low Range Amid Cooling Rally and Focus on China Stimulus

Asian Stocks React to Cooling Rally and Stimulus Talks

Asian stock markets showed little movement on Thursday, following a rally sparked by Donald Trump’s 2024 U.S. election victory, as attention shifted to stimulus measures in China and the upcoming U.S. Federal Reserve meeting.

Chinese Markets and NPC Focus

Chinese stocks saw modest gains, with the Shanghai Shenzhen CSI 300 and Shanghai Composite indexes both up 0.4%, while Hong Kong’s Hang Seng index rose nearly 1%. Investors remained focused on the National People’s Congress (NPC) meeting, which began earlier this week, expecting an announcement on additional fiscal stimulus to support the economy. Chinese markets had initially been wary of Trump’s proposed 60% trade tariff on imports from China, but Beijing’s response, including a congratulatory message to Trump and a phone call with President Xi Jinping, helped stabilize sentiment.

Japan and Regional Market Movements

In Japan, the Nikkei 225 index fell 0.3%, reversing some of the 2.6% gain from the previous session, while the TOPIX index gained 0.8%. The yen weakened against the dollar, contributing to gains in export-focused stocks like Toyota, despite a disappointing earnings report. Broader regional markets moved in a narrow range, as initial optimism from Trump’s election win faded.

Australian and South Korean Markets

Australia’s ASX 200 dropped 0.2%, reflecting a weak trade balance due to low demand from China. South Korea’s KOSPI also fell 0.2%, and Indian markets are expected to open flat after a sharp rebound earlier this week.