China stocks lose big

Despite government promises to stabilise the economy in 2023, Asia-Pacific markets traded lower, with bigger Chinese markets driving losses in the region.

Shanghai’s Composite Index dropped 1.92% to 3,107.12 as the city made the decision to once again close most schools on Monday due to an increase in Covid cases. In the last hour of trading, the Hong Kong Hang Seng index dropped 0.75% and the Shenzhen Component dropped 1.5% to 11,124.7.

According to a statement released during the annual budget-setting Central Economic Work Conference last week, Chinese officials promised to stabilise their economy in 2023 and retain enough of liquidity in the financial markets in order to fulfil important goals. Tuesday will see the setting of the one- and five-year Loan Prime Rates (LPR) by the People’s Bank of China.

In Australia, the S&P/ASX 200 fell 0.21% to 7,133.9. The Nikkei 225 index fell by 1.05% to 27,237.64 in Japan, and the Topix fell by 0.76% to 1,935.4. The Kospi in South Korea fell by 0.33% to 2,352.17.

Meanwhile, for the first time since September, Wall Street equities experienced a second straight week of losses on Friday as worries about the U.S. Federal Reserve continuing to raise rates increased.

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