Stocks in China fell Wednesday as surprisingly strong growth data dims hopes for more stimulus, while worries persist that triggers of the recent selloff could still inflict more damage.
In Tokyo, the Nikkei 225 index improved 78 points, or 0.4%, to 20.463.33,
In Hong Kong, the Hang Seng Index dipped 65.15, or 0.3%, to 25,055.76, with shares of Macau casinos—often a proxy for stimulus expectations—pulling the benchmark lower. A gauge of Chinese firms listed in the city fell 0.8%.
Elsewhere, stocks were up on expectations Greece’s Parliament will approve a rescue deal for the country announced Monday.
Greece has to enact many of its tough fiscal measures by later Wednesday, before formal talks to draw up a financing package with Europe can begin. The high bar means Greece’s exit from the eurozone still isn’t entirely ruled out.
The euro weakened against the U.S. dollar, at $1.1002 compared with $1.1009 late Tuesday in New York. The Japanese yen was at ¥123.32 against the U.S. dollar, strengthening from ¥123.39 late yesterday in New York.
CHINA
In China, the CSI 300 gave up 145.39 points, or 3.5%, to 3,966.76
China’s growth held steady at 7% in the second quarter, a level few economists expected given signs that Beijing’s policies to get the world’s second-largest economy back in gear had fallen short.
The relatively strong reading suggests that the government may have less incentive to boost investment, which could cool interest in blue-chips stocks that would benefit, such as state-owned banks and oil firms, according to one expert.
Chinese officials also have increased scrutiny on margin lending, steering investors from gray-market financing options, like peer-to-peer lending, that offer credit for leveraged share purchases.
Another sign of waning confidence: Foreign investors have pulled capital out of Shanghai stocks for seven straight days, via a trading link with Hong Kong, the longest stretch of net outflows since the program began last November.
Despite the relatively small number of Chinese stock investors, some have questioned whether the recent rout would derail progress for long-promised economic reforms as China tries to evolve beyond its export- and investment-driven economy.
China is still ramping up efforts to internationalize its currency, announcing late Tuesday it would scrap quotas that limited investments from foreign central banks, sovereign-wealth funds and other big financial institutions in the country’s $6.1-trillion U.S. bond market.
In other markets
In Taiwan, the Taiex index inched up 12.44 points, or 0.1%, to 9,054.20
In Korea, the Kospi index gained 13.68 points, or 0.7%, to 2,072.91
In Singapore, the Straits Times Index gathered 22.36 points, or 0.7 %, to 3,338.86
The NZX 50 added 55.07 points, or 1%, to 5,805.95
The ASX 200 Index moved forward 58.82 points, or 1.1%, to 5,636.23
