Shares in mainland China plunged as traders expressed their disappointment with the lack of new stimulus. The U.S. government's possible attempt to break up Google weighed on tech.
China: Hong Kong and Shanghai plunges over stimulus sadness
A day after Hong Kong's Hang Sang Index posted its steepest one-day plunge since 2008 , China mainland shares took their own steep dive. Shanghai’s SSE Composite dropped 6.62% while Hong Kong gave up another 1.38% as investors again voted against Beijing’s Tuesday explanation of its stimulus plans—which offered few details and no new big measures . China's finance minister will give another briefing on Saturday, at which investors expect more measures to boost the economy.
Japan: Nikkei rises as 7-Eleven owner shares rise on higher bid
The Nikkei 225 rose 0.87%, buoyed by shares in retailer Seven & i Holdings, which soared as much as 11.7% before closing up 4.71% after Bloomberg reported that Canadian convenience store operator Alimentation Couche-Tard had increased its takeover bid by about 20%. Tech shares also rose, as new Prime Minister Shigeru Ishiba dissolved parliament in advance of Oct. 27 snap elections in which he hopes to consolidate power.
Europe: Shares waver as fading China optimism and Rio Tinto deal dampen upswing
European stocks rose slightly early Wednesday, as fading China optimism softened a general upswing. The U.K.’s FTSE 100 was up 0.50% in early trading with broad-based rises, tempered by a drop in Rio Tinto shares on the announcement it was buying Arcadium Lithium for $6.7 billion. The STOXX Europe 600 was up a marginal 0.18%.
U.S. premarket slips with Boeing and Google news
A day after all three rose, the main U.S. indexes were all down in premarket trading Wednesday, as Boeing's withdrawal of its pay offer to its striking machinists trimmed 0.8% from its shares, and the announcement that the DOJ might push to split up Google weighed on owner Alphabet. The possible DOJ action weighed on tech more broadly, a day after the group of tech stocks known as the Magnificent Seven all rose, with the largest gain going to Nvidia , up 4.1% Tuesday.
And earnings season is here:
Delta Air Lines reports on Thursday, and JPMorgan, Wells Fargo , and BlackRock on Friday. CPI data for September will also be released before the bell on Thursday.
