Investing.com– Most Asian stocks fell on Thursday, extending recent losses as signs of sticky U.S. inflation fueled uncertainty over future interest rate cuts, while investors held out for more stimulus measures in China.
Regional markets took middling cues from Wall Street as a risk-on rally, following Donald Trump’s election victory last week, now appeared to be petering out. U.S. stock index futures steadied in Asian trade, after Wall Street retreated from record highs over the past two sessions.
U.S. consumer price index inflation data read in line with expectations for October, but still showed inflation remained sticky.
While the reading still spurred bets on a December interest rate cut by the Federal Reserve, the longer-term rate outlook grew more uncertain, especially in the face of potentially inflationary policies under Trump.
Markets were now awaiting an address by Fed Chair Jerome Powell for more cues on monetary policy. The Fed had cut rates by 25 basis points last week, and reiterated its data-driven approach to future easing.
China stocks drift lower with more stimulus awaited
China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes fell 0.2% each, while Hong Kong’s Hang Seng index lost 0.8% on Thursday.
Positive earnings from internet giant Tencent Holdings Ltd (HK:0700) did little to lift Hong Kong stocks, although Tencent still rose more than 1%.
Local markets were nursing some losses after Beijing’s latest round of fiscal measures largely underwhelmed, with investors holding out for more targeted measures aimed at supporting private spending and the property market.
