Asia stocks muted; Hong Kong rallies amid strong IPO activity

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Asia stocks muted; Hong Kong rallies amid strong IPO activity

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.

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.index was the standout performer in Asia, rallying 1.7% as a strong debut by China Resources Beverage boosted sentiment towards local stocks.

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 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.

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