Chinese shares experienced a significant decline on Wednesday, with Shanghai's benchmark dropping by 6.6% and Hong Kong's sliding by 1.5%. However, other world markets mostly advanced, with European stocks opening flat. France's CAC 40 rose by 0.2%, Germany's DAX remained little changed, and Britain's FTSE 100 climbed by 0.5%.
The future for the S&P 500 was 0.3% lower, and the Dow Jones Industrial Average fell by 0.2%. Economic stimulus plans from officials in Beijing did not meet the high expectations set after various policies were announced to revive the property market and boost economic growth.
The Shanghai Composite lost 6.6% after gaining 4.6% the previous day, while the CSI 300 Index dropped by 7.1%. The Shenzhen market's benchmark fell by 8.7%, and Hong Kong's Hang Seng index shed 1.5% following a significant plunge the day before.
China's government aims for about 5% annual growth this year, but the economy expanded at a slower pace in the last quarter, leading economists to revise their estimates downward. The lack of new stimulus measures has disappointed market participants, with hopes for fiscal policies to match those announced in late September.
In Tokyo, the Nikkei 225 index advanced by 0.9%, and Seven & i Holdings saw a 4.7% increase in its shares after reports of a takeover bid increase. Japan's Lower House of parliament was dissolved to prepare for a general election on Oct. 27.
Australia's S&P/ASX 200 gained 0.1%, while South Korea's markets were closed for a public holiday. On Tuesday, the S&P 500, Dow, and Nasdaq composite all posted gains. Oil prices rose due to escalating tensions in the Middle East, with U.S. crude oil at $73.82 per barrel and Brent crude at $77.50 per barrel.
In currency trading, the U.S. dollar edged up against the Japanese yen, while the euro fell slightly. Overall, global markets continue to react to economic indicators and geopolitical events, shaping investor sentiment and market movements.
