(Bloomberg) — Asian shares struggled for direction after a policy-induced intraday rally in China lost steam, offsetting strong gains in heavyweight Samsung Electronics Co. Ltd.
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A key gauge of the region’s equities turned flat after rising as much as 0.4%. China’s CSI 300 Index closed 0.5% down, following a 1.6% gain earlier that was inspired by news that the country’s securities regulator urged listed companies to boost returns on their stocks. Chinese stocks listed in Hong Kong also slowed their advancement.
Samsung Electronics was another focus in Asia, rallying after South Korea’s biggest firm announced a surprise stock buyback plan.
European stock futures pointed to mild gains at the open, with their US peers edging higher.
Weighing on broader investor sentiment are lingering concerns about Donald Trump’s potentially inflationary economic policies and Friday’s upbeat US retail sales data that reduced expectations for the Federal Reserve to cut interest rates. The resumed selling in Chinese stocks offers another reminder of the difficulties faced by Beijing to prop up the market in the absence of potent fiscal stimulus.
“We think that the Trump trade, as it’s called, is kind of faltering a little bit now,” Anita Gupta, head of equity strategy at Emirates NBD PJSC, told Bloomberg TV. As private consumption is not yet rebounding in China, “we would wait for further green shoots before we go back overweight” on the country’s equities, she added.
The Bloomberg dollar index was largely steady. The yen slipped after Bank of Japan Governor Kazuo Ueda said the timing of the central bank’s next policy adjustment will depend on the economy and prices. The BOJ is scheduled to meet on Dec. 18-19.
In corporate news, Alibaba Group Holding Ltd. is proposing to sell dollar and yuan bonds to pay back offshore debt and buy back shares, following the Chinese tech conglomerate’s issuance of a record convertible bond offering earlier this year. Meanwhile, Enel SpA raised its dividend on 2024 earnings and said it’s targeting up to €6.9 billion ($7.3 billion) in profit for 2025.
As for commodities, oil rebounded. Gold advanced after suffering its worst weekly drop since 2021, as the dollar eased and traders weighed the outlook for Fed rate cuts.
Elsewhere this week, China’s banks are expected to keep their loan prime rates unchanged after a cut in October. Bank Indonesia will deliver a policy decision as the rupiah neared 16,000 per dollar on Friday, a key psychological level for a central bank focused on currency stability.
UK and eurozone inflation readings are due which will help gauge the outlook for Bank of England and European Central Bank policy with a swath of officials from the respective institutions also due to speak. Nvidia’s results may test the sustainability of AI-led stock gains.
Key events this week:
Group of 20 Summit in Brazil begins, Monday
European Union foreign ministers meet in Brussels, Monday
RBA meeting minutes, Tuesday
Eurozone CPI, Tuesday
Canada CPI, Tuesday
China loan prime rates, Wednesday
Indonesia rate decision, Wednesday
South Africa retail sales, CPI, Wednesday
UK CPI, Wednesday
Nvidia earnings, Wednesday
ECB President Christine Lagarde and Vice President Luis De Guindos speak, Wednesday
ECB issues financial stability review, Wednesday
Fed Governor Lisa Cook, Fed Governor Michelle Bowman speak, Wednesday
BOE Deputy Governor Dave Ramsden speaks, Wednesday
