05/03/2024 – 5:49
By Sergio Caldas*
São Paulo, 03/05/2024 – Stock markets in Asia and the Pacific closed mostly lower this Tuesday, after announcements by China to boost its economy apparently failed to impress investors.
At the opening of its legislative meeting, China set a target of growing “around” 5% this year, the same as last year. For ING, it will be more difficult to meet the objective in 2024, as many of the boosts to the economy resulting from measures taken during the covid-19 pandemic will gradually diminish. Beijing also increased its defense budget by 7.2% and announced plans to issue the equivalent of US$139 billion in special ultra-long bonds.
In mainland China, the measures were met with restraint. The Shanghai Composite Index rose a modest 0.28% to 3,047.79 points, while the less comprehensive Shenzhen Composite fell 0.59% to 1,718.31 points.
Research by S&P Global/Caixin showed that the Chinese services PMI decreased to 52.5 in February, contradicting the forecast that it would remain at the previous month's level of 52.7. The result suggests expansion of the sector at a slightly more restrained pace.
Leading losses in Asia, the Hang Seng suffered a significant drop of 2.61% in Hong Kong, to 16,162.64 points, pressured by a drop of more than 4% in its technology sub-index.
Elsewhere in the region, Japan's Nikkei fell a marginal 0.03% in Tokyo to 40,097.63 after hitting a new all-time high in the previous session, and the Kospi fell 0.93% in Seoul to 2,649. 40 points, after data only confirmed that South Korea's Gross Domestic Product (GDP) had an annual expansion of 2.2% in the fourth quarter of last year.
On the other hand, Taiex secured an advance of 0.42% in Taiwan, at 19,386.92 points.
In Oceania, the Australian stock market followed the prevailing bad mood in Asia and was in the red for the second day in a row. The S&P/ASX 200 fell 0.15% in Sydney, to 7,724.20 points.
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*With information from Dow Jones Newswires and Associated Press
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