Asia stocks edge higher with CPI in focus; China falls past fiscal stimulus talk

Most Asian stocks drifted higher on Thursday with focus on key U.S. inflation data for more cues on interest rates, while Chinese markets surged after Beijing flagged plans for more fiscal stimulus measures.

Regional markets took a positive lead-in from Wall Street, where the Dow Jones Industrial Average hit a record closing high after the minutes of the Federal Reserve’s September meeting showed policymakers in favor of its 50 basis point cut.

But U.S. stock index futures were flat in Asian trade, given that the minutes also showed the Fed did not commit to any pace of interest rate cuts.

Chinese stocks surge as Beijing talks fiscal stimulus
China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes rose 0.7% each, recovering some measure of steep losses made in the prior session.

Stocks rose after the finance ministry said it will hold a briefing this Saturday to outline plans for fiscal stimulus measures aimed at boosting growth.

The move came after a briefing held on Tuesday, regarding recent monetary stimulus measures, largely disappointed investors. Chinese markets had tumbled from two-year highs on Wednesday.

Still, Chinese stocks were sitting on a strong rally in recent sessions, as investors cheered the prospect of more stimulus measures in the country, which has been struggling with slowing growth.

Hong Kong’s Hang Seng index surged 2.8%, recovering from steep losses clocked earlier in the week. Trip.com Group Ltd (HK:9961) was the top performer on the index, surging over 5% after Citi hiked its earnings estimates for the firm.

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Gains in Chinese markets were also driven by the People’s Bank doling out 500 billion yuan ($70.69 billion) in liquidity support for capital markets.

Asian markets rise, CPI in focus
Broader Asian markets were gingerly higher on Thursday, with focus turning to U.S. consumer price index inflation data, due later on Thursday, for more cues on the path of rates.

Japan’s Nikkei 225 index rose 0.3%, while the TOPIX added 0.2%. Gains in Japan were limited by data showing a bigger-than-expected increase in producer price index inflation in September, which could herald more inflationary pressure in the country.

Optimism over China helped Australia’s ASX 200 add 0.6%, given the country’s large trade exposure to the mainland.

South Korea’s KOSPI added 0.5%, rising in catch-up trade after a holiday on Wednesday.

Futures for India’s Nifty 50 index pointed to a flat open, with the index nursing a tumble from record highs over the past week.