Asian Shares Mostly Lower As China Stimulus Hopes Fade

(RTTNews) - Asian stocks ended mostly lower on Tuesday as China's week-long annual session of parliament commenced without any big-ticket stimulus plans to prop up the struggling economy.

China is aiming for five percent GDP growth this year but there is reluctance to use deficit spending for economic stimulus.

The Chinese government has set the targeted fiscal deficit-to-GDP ratio at 3 percent this year, down from a revised 3.8 percent last year.

China's Shanghai Composite index settled 0.28 percent higher at 3,047.79 after a choppy session.

Hong Kong's Hang Seng index plunged 2.61 percent to 16,162.64 as a private survey pointed to slowing growth in China's key services sector in February.

Japanese markets ended mixed following a retreat from record highs on Wall Street overnight.

Investors also reacted to encouraging service sector activity data for February and reports suggesting that the U.S. government is working to block exports of AI semiconductors to China.

The Nikkei average ended a choppy session marginally lower at 40,097.63 after hitting a fresh record the previous day. The broader Topix index rose half a percent to 2,719.93.

Chip-testing equipment maker Advantest fell 2.6 percent while tech investor SoftBank Group rose 0.8 percent.

Seoul stocks fell notably, dragged down by technology stocks. The Kospi average dipped 0.93 percent to 2,649.40 ahead of a two-day testimony from Fed Chair Jerome Powell.

South Korea's economy grew 0.6 percent in the fourth quarter of 2023 from the previous quarter, revised central bank data showed earlier today.

Australian markets fell for a second straight session, with financial and energy stocks leading losses. Gold miners surged as gold prices soared to three-month highs.

The benchmark S&P/ASX 200 slid 0.15 percent to 7,724.20 ahead of the fourth-quarter GDP data due later in the week.

The broader All Ordinaries index closed 0.10 percent lower at 7,988.30 despite positive services sector activity and current account balance data.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index rose 0.25 percent to 11,753.02.

U.S. stocks backed off from record highs overnight while Treasury yields ticked higher on uncertainty over the path of interest rates.

The Dow eased 0.3 percent, the S&P 500 slipped 0.1 percent and the tech-heavy Nasdaq Composite gave up 0.4 percent.