China stocks suffer worst fall since 1997 – latest updates

Thanks for joining me. We begin the day with a look at what is happening in China, where stocks have suffered heavy declines as traders were left unimpressed by Beijing’s efforts to kick start the world’s second largest economy.

Stocks in Shanghai, Shenzhen and Hong Kong were all down heavily, with the benchmark CSI 300 recording its worst drop since 2020.

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What happened overnight 

Shares in China slumped as details of economic stimulus plans from officials in Beijing failed to live up to investors’ expectations.

The Shanghai Composite lost 5.1pc to 3,311.02 after it gained 4.6pc Tuesday when it reopened from a national holiday. 

The CSI300 Index, which tracks the top 300 stocks traded in the Shanghai and Shenzhen markets, fell by 5.6pc.

Stocks in Hong Kong fluctuated between gains and losses, with the Hang Seng Index falling by 2.4pc to 20,418.61. This decline followed a plunge of over 9pc on Tuesday – its worst since 2008 – as traders sold off shares after recent rallies.

Stephen Innes of SPI Asset Management said: “Let’s call it what it is — an abject failure — as Chinese shares opened sharply lower, sending a clear signal that the market is no longer buying half-hearted promises.”

In Tokyo, the Nikkei 225 index advanced 0.6pc to 39,178.70. Shares of the Japanese retailer Seven & i Holdings soared more than 10pc in early trading after media reported that Canadian convenience store operator Alimentation Couche-Tard had increased its takeover bid by about 20pc.

Japan’s parliament was due to be dissolved on Wednesday to pave the way for a general election. Prime Minister Shigeru Ishiba is seeking to consolidate support after taking office last week, amid signs the Liberal Democrats’ ruling coalition remains shaky after Ishiba’s predecessor, Fumio Kishida, stepped down following a slew of scandals among the party’s lawmakers.

Australia’s S&P/ASX 200 gained 0.2pc at 8,189.70. South Korea’s markets were closed for a public holiday.

On Wall Street, rises in big tech firms such as Nvidia and Apple boosted the main indexes, even though oil and mining stocks pull downwards. The Dow Jones Industrial Average rose 0.3pc, to 42,080.37, the S&P 500 rose 1pc, to 5,751.13, and the Nasdaq Composite rose 1.5pc, to 18,182.92.

The yield on benchmark 10-year US Treasury notes dipped to 4.02pc from 0.1pc late on Monday.