China Market Rally Slows as Investors Await Policy Signals

China's stock market showed a slight decline on Friday, stepping back from a decade-high point as investor attention shifted to upcoming policy signals. The Shanghai Composite index retreated by 0.1%, despite earlier gains, marking its highest level since 2015 at the beginning of the day.

The CSI300 index also slipped by 0.6%, though both indices have seen a healthy weekly increase, recovering from earlier losses prompted by investor profit-taking following China's military parade. According to Morgan Stanley's strategist, Laura Wang, market players are now cautiously waiting for clearer macroeconomic signals.

In Hong Kong, the Hang Seng Index climbed 1.2%, nearing its apex since August 2021, spurred by a surge in tech stocks. Alibaba and Baidu soared on the news of using their own AI chips. Meanwhile, hopes of a U.S. rate cut propelled regional stocks, as the broader MSCI Asia ex-Japan index rose by 1.2%.

(With inputs from agencies.)