Chinese stocks underperformed other markets in Asia with a cautious expectation of Beijing's fiscal stimulus. The CSI 300 Index fell 1.9 % before midday, giving back Thursday's gains. Meanwhile, stocks in Japan and South Korea increased, showing a more resilient outlook amid losses on Wall Street after the Federal Reserve's inflation data.
Investors expect China's Finance Minister to announce new fiscal stimulus on Saturday to revive the slowing economy. Expectations are that Beijing could offer new support of up to 2 trillion yuan ($ 283 billion).
Kieran Calder of Union Bancaire Privee in Singapore said the falls in Chinese stocks reflected the risk of possible disappointments at the Finance Ministry briefing. ‘The Finance Ministry does not approve extra budget or bond quotas, so it is unclear whether new stimulus details will be presented at the briefing,’ Mr Calder said.
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