Investing.com

Most Asian stocks moved in a flat-to-low range on Thursday as a rally following Donald Trump's victory in the 2024 U.S. election cooled, shifting focus to China's stimulus measures and an upcoming Federal Reserve meeting.

While most Asian markets rose sharply on Wednesday, Chinese stocks lagged due to fears of stricter trade tariffs. The China National People’s Congress (NPC), which began earlier this week, is now pivotal for hints on fiscal stimulus.

Regional markets received limited positive cues from a strong overnight session on Wall Street, where U.S. benchmarks surged to record highs post-Trump's victory. U.S. stock index futures steadied in Asian trade, with investors looking ahead to the Fed meeting's conclusion for insights into interest rates.

The Fed is expected to cut rates by 25 basis points, but its outlook remains uncertain due to Trump's presidency and lingering inflation.

Chinese stocks drift higher, NPC meeting in focus

China's Shanghai Shenzhen CSI 300 and Shanghai Composite indexes rose by 0.4% each, while Hong Kong's Hang Seng index gained nearly 1%, recovering from mild losses on Wednesday. Despite the implications of a Trump presidency, Chinese markets have stayed resilient, with Trump proposing a 60% trade tariff on Chinese imports. Beijing congratulated Trump on his victory, and he reportedly spoke with Chinese President Xi Jinping.

This week, all eyes are on the NPC meeting, where plans for fiscal spending to support the economy are widely anticipated, with announcements expected after the meeting concludes on Friday. Chinese trade data is also scheduled for release later today.

Japanese stocks buoyed by weaker yen

Japan's Nikkei 225 index fell 0.3% after a 2.6% surge in the prior session. Meanwhile, the TOPIX index rose 0.8%, buoyed by generally upbeat sentiment towards Japanese stocks following a sharp drop in the yen.

The yen weakened against a stronger dollar, hitting its lowest level in three months as the greenback surged. Markets expect the wide interest rate gap between Japan and the U.S. to continue under Trump's presidency.

Weakness in the yen supported export-oriented stocks, with Toyota Motor Corp. rising over 4%, despite underwhelming earnings for September. However, Honda Motor Co. fell 0.2% due to warnings about weak Chinese sales and potential impacts from heightened U.S. trade tariffs.

Broader Asian markets remained flat-to-low, as initial optimism over Trump’s victory faded. Australia's ASX 200 fell 0.2%, impacted by weak commodity demand from China, while South Korea’s KOSPI also decreased by 0.2%. Futures for India’s Nifty 50 index indicated a muted open following the index's sharp rebound from four-month lows this week.