Asian stocks plunge, China economic targets fail to impress markets, Hang Seng falls
As Beijing announces 5% GDP growth target for 2024, same as 2023。However, with smaller fiscal spending targets, investors question how China intends to boost growth to meet its GDP targets.。
On Tuesday, most Asian markets fell as investors recouped recent profits in technology stocks and forecasts for the Chinese economy and plans for this year failed to improve sentiment.。
Regional markets echoed Wall Street's overnight decline, with record high valuations and expectations of further signals on U.S. interest rates driving a round of profit taking.。U.S. Futures Slightly Lower in Asian Trading。
On Tuesday, stocks were flat to the doldrums as China's slightly weaker-than-expected outlook for 2024 sent Hong Kong's Hang Seng index down 2.5%。
As Beijing announces 5% GDP growth target for 2024, same as 2023。However, with smaller fiscal spending targets, investors question how China intends to boost growth to meet its GDP targets.。
The targets were announced at the 2024 National People's Congress, where the government also pledged to take additional measures to boost consumer spending and confidence.。However, these goals are not much different from Beijing's previously pledged policy support, which has not given much of a boost to the economy.。
Separately, private PMIs data show that growth in China's vital services sector is weakening, which is bad news for the economy.。
Concerns about China have affected other Asian markets, especially those that trade heavily with China.。Australia's ASX 200 lost 0 of its early gains, despite positive current account data in Australia, which bodes well for Wednesday's GDP figures..2%。
India's Nifty 50 futures hint at a slow start, with local tech firms reflecting global losses。However, the Niferty index and India's Bombay Stock Exchange 30 index remained near the record highs set last week, due to the strong performance of India's GDP figures.。
Tech profit-taking affects Japan and South Korea
On Tuesday, declines in technology stocks dragged down South Korea's KOSPI index and Japan's Nikkei 225, which fell from record highs near 40,000 points.。
Weakness in the tech sector is spreading from Wall Street as AI-driven emergence is expected to cool, with further rate instructions expected from Fed Chair Jerome Powell's two-day appearance.。
The weakness in tech stocks was also hurt by overnight losses at Apple, which was hit by a $2 billion antitrust fine in Europe.。
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