Chinese stocks fell amid fear of a stagnating economy
Stocks in Asia finished mixed, as traders
once again tread cautiously ahead of the
Fed's two-day policy meeting, which kicks off tomorrow. China's Shanghai Composite took a beating, losing 3.5% on
data-driven growth concerns -- despite a nearly 26% year-over-year jump in fiscal spending by the Ministry of Finance. Meanwhile, Hong Kong's Hang Seng slid 0.5%, as traders braced for the latest gross domestic product (GDP) reading. Elsewhere, Japan's Nikkei trimmed its lead to 0.3%, as the Bank of Japan (BoJ) kept its monetary policy unchanged, and warned that slowing demand could negatively impact imports and industrial output. South Korea's Kospi also tacked on 0.3%.
Trading in Europe has been choppy today, as investors eye China's struggles and look ahead to an interest rate decision from the U.S. Fed. At last check, Germany's DAX has edged up 0.1%, despite a sharp drop in the ZEW economic sentiment index, while France's CAC 40 has popped 0.6%. On the flip side, London's FTSE 100 is off 0.1%, as the annual inflation rate in the U.K. dropped back to zero. Taking a step back, the European Union's statistics agency said the region's trade surplus widened in July, powered by a weaker euro.
