Chinese shares closed broadly lower as investors focus on the most important political economy meeting, the Third Plenum, starting Monday for more signals on the country's five-year plan. The benchmark Shanghai Composite Index ended flat at 2,971.30, the Shenzhen Composite Index closed 0.1% lower and the ChiNext Price Index declined 0.1%. Foxconn Industrial Internet led the losses, dropping 5.2%. Shandong Gold Mining and Cosco Shipping were down 4.8% and 4.65%, respectively. Meanwhile, property stocks rose with investors betting on more property sector stimulus in the coming plenum meeting, Morningstar analyst Jeff Zhang said. Poly Developments & Holdings gained 3.8% and China Vanke rose 2.1% after securing a CNY1.04 billion loan from a state bank.
Hong Kong shares ended higher, led by gains in property and consumer-related tech stocks. Investors will be watching China's Third Plenum meeting next week for further supportive policies, especially those targeting the beleaguered property sector. Positive signals from U.S. inflation data and expectations of policy tailwinds from China's key political meeting likely supported the market, Morningstar analyst Jeff Zhang says in a note. There is also the likelihood that the market views the prior selloff as overdone, he says. Alibaba gained 3.9% and Meituan was 4.9% higher. Among property developers, China Resources Land added 4.3% and China Overseas Land & Investment rose 3.4%. Tech hardware stocks weighed on the market, with Lenovo Group dropping 2.3% and ZTE down 2.8%. The benchmark Hang Seng Index rose 2.6% to close at 18,293.38; the Hang Seng Tech Index climbed 2.3%.
Japanese stocks ended lower, dragged by falls in electronics and financial stocks, as U.S. tech stock selloffs overnight lead to sharp drops in bond yields. Tokyo Electron Ltd. lost 6.2% and Dai-ichi Life Holdings shedded 4.1%. The Nikkei Stock Average fell 2.4% to 41,190.68. The 10-year Japanese government bond yield fell 4 basis points to 1.040%. Investors are focusing on economic data and their policy implications.
India's Sensex rose 0.8% to close at 80,519.34, driven primarily by the tech sector, said Suman Bannerjee, CIO at investment firm Hedonova. Despite mixed signals from global markets, Indian equities likely attracted buyers during recent dips, reflecting positive market sentiment, Bannerjee added. Tata Consultancy Services gained 6.7% after 1Q net profit rose 8.7% on year. Infosys added 3.6% and HCL Technologies was 3.2% higher. Among decliners, Maruti Suzuki India fell 1.0%, while Asian Paints and Kotak Mahindra Bank lost 0.8% each.