Asian stocks flat with the S&P 500 index futures down
Asian stocks stabilized at the start of trading on Wednesday after Wall Street ended its rally, with the S & P 500 hitting a record high on Tuesday and lower-level trade talks between the US and China, which are expected to boost hopes this week to ease trade tensions.
But concerns about the broader impact of legal problems faced by two close associates of US President Donald Trump have cut S&P futures, which has affected investor sentiment.
In Asia, the Shanghai Composite Index fell 0.5%, while the SZSE index fell 0.5%. Hong Kong’s Hang Seng Index fell 0.1%.
On the downside, Australia’s S&P/ ASX 200 index continued its decline and traded 0.4% lower on Wednesday after Australian Prime Minister Malcolm Turnbull’s driving challenge on Tuesday.
The broader MSCI Asia Pacific Index outside Japan (MIAPJ0000PUS) was stable, while the Nikkei 225 index fell 0.2 percent.
“With the leadership and discord between the main parties that have characterized Australian politics for a decade now, the turmoil is likely to be negatively affected by the business sector,” analysts from ANZ said in a note.
Looking ahead, minutes of the Federal Reserve’s monetary policy policy will be announced later in the day, while markets are likely to focus on whether President Jerome Powell will drop signs of future price policies when he speaks on Friday at the Federal Reserve’s annual meeting of the city Kansas City at Jackson Hole. , Wyoming.
China’s monetary policy will be more flexible and effective in channeling funds into the real economy
China’s monetary policy will be more flexible and effective in channeling funds into the real economy, especially for small and micro enterprises, to stabilize economic growth, central bank officials told a news conference on Tuesday.
Zhu Huxin, deputy governor of the newly appointed People’s Bank of China, said monetary policy would strike a better balance between stable growth and risk management and encourage financial institutions to inject money into targeted areas.
Zhu pledged to keep liquidity at a reasonable and broad level, but without strong policy incentives.
The tight regulatory framework would not constrain credit growth for financial institutions, and their adequate capital reserves must meet the needs of finance and the real economy.
This year, the central bank has so far injected about 2.4 trillion yuan ($ 381 billion) into the financial sector through three cuts in reserves and open market operations.