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Asia report: Shares mixed on China stimulus talk, US bonds

Fri 21 August 2026 09:33 | A A A

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(Sharecast News) - Asian markets were mixed at the close on Friday, with China in focus as investors assessed fresh signals of fiscal support against a backdrop of persistent global bondmarket stress.

Beijing remained in focus after Vice-Finance Minister Liao Min said China would introduce additional fiscal measures "in a timely manner" to counter slowing momentum in the world's secondlargest economy, reinforcing expectations that policymakers will lean more heavily on spending rather than monetary easing.

Officials stressed that fiscal resources would be allocated over a longer horizon and directed more explicitly toward households and consumption, a shift aimed at reviving domestic demand that has remained weak through the summer.

The comments followed a run of disappointing July data, including slower industrial output and retail sales, which analysts said underscored the need for bolder fiscal deployment after months of underexecution..

Against this policy backdrop, the Shanghai Composite ended marginally higher at 3,905.20, while Hong Kong's Hang Seng advanced 1.1% to 25,967.58, supported by strength in technology and financial stocks as traders positioned for potential stimulus followthrough.

Japan's Nikkei 225 slipped 0.3% to 66,016.36, extending a difficult week as domestic bond yields climbed back toward multidecade highs, adding pressure to ratesensitive sectors.

South Korea's Kospi rose 0.9% to 6,912.95, buoyed by chipmakers even as global tech valuations remained under scrutiny amid rising borrowing costs.

Australia's ASX 200 eased 0.3% to 9,058.90, with miners and energy names mixed as traders balanced softer oil prices against ongoing geopolitical tensions in the Gulf.

Across the region, traders remained sceptical about the reasoning behind Washington's expanded debt buyback plan, with US Treasury yields heading northwards once again/

Analysts warned that higher global yields continue to challenge equity valuations, particularly in Asia where several markets are already contending with domestic growth headwinds and fragile consumer demand.

Reporting by Frank Prenesti for Sharecast.com

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