Investing.com– Most Asian stocks fell on Monday (NASDAQ:MNDY) as fresh fiscal stimulus from China largely underwhelmed, while data over the weekend showed deflation in the country remained in play.
Regional markets brushed off a strong lead-in from Wall Street, which rose on Friday and remained at record highs amid persistent optimism over a Donald Trump presidency.
U.S. stock index futures rose in Asian trade, with focus turning to upcoming inflation data and a slew of Federal Reserve speakers this week.
Chinese stocks dip as fiscal stimulus underwhelms
China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes fell 0.6% and 0.2%, respectively, while Hong Kong’s Hang Seng index slid 2.4% and was the worst performer in Asian markets.
Investors were mostly underwhelmed by China’s National People’s Congress announcing about 10 trillion yuan ($1.4 trillion) in a debt swap program to improve the finances of local governments.
But a lack of direct fiscal stimulus and targeted measures to improve the housing market and personal consumption left investors wanting, especially as data over the weekend showed Chinese deflation persisted in October.
Chinese consumer price index inflation grew at a slower pace last month, while producer price index inflation shrank for a 25th consecutive month.
Analysts at ANZ said the lack of direct stimulus was likely to accommodate any potential headwinds from a change in U.S. administration, after Trump’s victory. Trump has vowed to impose steep trade tariffs on China, which bodes poorly for the country.
This notion had also weighed on Chinese markets over the past week.
