Investing.com– Most Asian stocks drifted lower on Friday, with Chinese markets sinking in anticipation of more cues on fiscal stimulus, while South Korean shares rose after the Bank of Korea cut interest rates.
Broader markets were subdued as hotter-than-expected U.S. inflation data spurred doubts over just how much the Federal Reserve will cut interest rates in the coming months.
Asian markets took a negative lead-in from Wall Street, which ended slightly lower on Thursday as the inflation data furthered bets that the Fed will cut rates by a smaller margin in November.
U.S. stock index futures drifted higher in Asian trade, with focus squarely on the third-quarter earnings season.
Chinese stocks sink with fiscal stimulus in focus
China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes fell between 1.5% and 2%, losing ground after a volatile session on Thursday as investors awaited more cues on fiscal stimulus measures.
China’s finance ministry is set to hold a briefing on Saturday, where it will outline fiscal support for the economy. The briefing was announced after investors largely balked at Beijing’s latest round of monetary stimulus, and called for more targeted, fiscal measures.
Analysts expect China to deploy at least 2 trillion yuan ($283 billion) of fiscal measures, with a bulk of these aimed at shoring up private consumption.
Chinese stocks had initially rallied to two-year peaks on optimism over more stimulus. But this rally stalled in recent sessions, as investors doubted just how much headroom Beijing had to release more support.
