Asian stocks dropped in early trading Monday, as traders in China returned to work after a weeklong holiday while Japan’s markets closed for a three-day weekend.
Chinese stocks returned from the Golden Week holiday with opening declines of 2% after last week’s wide selling in Asia and a U.S.-listed benchmark of mainland companies falling nearly 5%. The major indexes in both Shanghai SHCOMP, -2.40% and Shenzhen 399106, -2.32% fell similarly, with investor sentiment perhaps bolstered a bit by the latest percentage-point cut in banks’ reserve-requirement ratios announced Sunday. The People’s Bank of China was widely expected to cut the metric again before year-end amid ongoing stimulus efforts. But Monday is liable to be an up-and-down day as investors try and price in not just what’s happened so far this month but also what continues to lie ahead on the trade front.
Hong Kong’s Hang Seng Index HSI, -0.48% was about flat, though financial stocks rose. Insurers AIA 1299, +0.39% and China Life 2628, +0.70% rose about 1%, as did Bank of Communications 3328, +1.08% and Bank of China 3988, -0.30% .
Stocks were also around flat in South Korea SEU, -0.22% and New Zealand NZ50GR, -0.25% . Indexes in Taiwan Y9999, -0.90% and Singapore STI, -0.56% declined.
Australia’s ASX 200 XJO, -0.91% was down about 1% amid weakness in oil prices. The banking sector also slipped, led by losses from Australia and New Zealand Banking Group ANZ, -2.34% and Commonwealth Bank of Australia CBA, -0.56% .
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