SINGAPORE: Mainland Chinese stocks returned from an extended break with a roaring start on Tuesday, though the optimism did not spill into regional share markets as Beijing fell short on delivering more details of its massive stimulus.
Mainland shares also erased some of their early gains over the course of the trading day, after the chairman of China's economic planner Zheng Shanjie provided little detail of how the country plans to roll out its support measures at a closely watched press conference on Tuesday. "What's next? No major press briefing lined up so far. Thus, it is likely we see markets consolidating and digesting what has already been announced, which arguably is meaningful, but not quite enough to satiate lofty expectations."
Any chance of another 50-basis-point rate cut next month has been erased and traders are pricing in a 12% chance the Fed could keep rates on hold. Just 50 bps worth of cuts are priced in by December.