Asian Stocks Down, US Markets Rally On Strong Earnings

Bangkok: Shares mostly lower in Asia on Thursday. A day before, US stocks rose following better-than-expected profit reports from Morgan Stanley, United Airlines and other big companies. Chinese markets fell back after officials in Beijing announced the government was expanding financing for housing projects to try to turn around a slump in the property market triggered by a crackdown on excessive borrowing by developers. In Hong Kong, the Hang Seng index dropped 1 per cent to 20,082.63, while the Shanghai Composite index shed 1.1 per cent to 3,169.38.

China is due to announce its economic growth data for the April-September quarter on Friday. Economists are forecasting annual growth at about 4.5 per cent, short of the government’s target of about 5 per cent. China’s leaders have promised more measures to help boost the economy, but so far have not provided details of stimulus on a scale that would satisfy investors hoping to see reforms that might address longer term problems such as massive local debt and weak consumer demand. Plans announced so far amount to a “bailout” aimed at nurturing a gradual recovery instead of a “V” shaped short-term rebound in prices, economists at ANZ Research said in a report.