Investing.com– Most Asian stocks struggled for direction on Wednesday as rising U.S. Treasury yields and uncertainty over the presidential election kept investors out of risky assets.
Hong Kong stocks were the best performers for the day after sentiment was boosted by strong local IPO activity. Chinese markets also extended recent gains after Beijing unveiled a flurry of stimulus measures.
Most other regional markets took middling cues from a flat overnight session on Wall Street, as a slew of mixed earnings also did little to drive up optimism. A spike in Treasury yields and anticipation of a tight presidential election- which is about two weeks away- weighed on sentiment.
U.S. stock index futures drifted lower in Asian trade.
Hong Kong rallies on improved IPO activity
Hong Kong’s Hang Seng index was the standout performer in Asia, rallying 1.7% as a strong debut by China Resources Beverage boosted sentiment towards local stocks.
The beverage maker’s shares surged 14% in their debut, after the firm raised about $540 million in its initial public offering.
China Resources Beverage is Hong Kong’s second-largest IPO this year, behind Horizon Robotics, which reportedly raised $696 million earlier this week. The firm’s shares are set to begin trading on Thursday.
The two IPOs, which raised more than a combined $1.2 billion, drummed up hopes that Hong Kong’s IPO activity was recovering from a two-year slump.
Chinese stocks rise as stimulus cheer persists
China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes rose 0.2% and 0.4%, respectively, extending recent gains after the People’s Bank of China cut interest rates slightly more than expected on Monday.
The rate cut also came at the heels of a string of major stimulus measures from Beijing, with investors now awaiting more cues on fiscal spending from a meeting of the National People’s Congress later in October.
Beyond Monday’s rate cut, the PBOC was also seen rolling out more liquidity measures to boost local capital markets this week, which buoyed Chinese stocks.
Broader Asian markets were mostly muted. Japan’s Nikkei 225 and TOPIX indexes were flat in anticipation of a general election and a Bank of Japan meeting later in October.
Japanese markets took little support from a softer yen, which slid to a three-month low this week.
In a bright spot for Japanese markets, Tokyo Metro surged 36% after a strong IPO.
Australia’s ASX 200 was flat, as was South Korea’s KOSPI.
Futures for India’s Nifty 50 index pointed to a negative open, as a mix of profit-taking, foreign capital outflows and middling earnings saw the index clock heavy losses in recent sessions.