Asian shares mixed, US stocks decline

Beijing: Shares were mixed on Tuesday in Asia after China’s premier said the country’s target for economic growth this year is around 5 per cent, in line with expectations. Hong Kong’s benchmark fell while Shanghai edged higher. Li Qiang, addressing the opening meeting of China’s National People’s Congress, also said Beijing would issue 1 trillion yuan ($139 billion) in long-term bonds to help bridge funding gaps, provide support to financially strapped local governments and invest in both advanced technology and in social support and education.

Li also said China would expand government-subsidized housing, part of a programme aimed at reversing a downturn in the property market after a crackdown on excess borrowing caused dozens of developers to default on their debts. But the government’s intention to keep its deficit at 3 per cent of China’s GDP disappointed investors hoping for more aggressive action, Stephen Innes of SPI Asset Management said in a commentary. “The unchanged target of 3 per cent fell below expectations and signalled a cautious approach to fiscal policy,” he said.