Stocks slump after officials deny stimulus plan

Stock markets across Asia fell on Wednesday after China’s state media denied rumors that the country was preparing to roll out a 2008-style stimulus to revive flagging economic growth, the Financial Times reported. The Shanghai Composite Index fell 0.2% to 2,384.7, and Hong Kong’s Hang Seng Index declined 1.9% to 18.690.22. The FTSE Asia Pacific index dropped 0.8% to 218.09. Chinese financial, property and mining firms all experienced steeper-than-average declines. Despite official denials this week of a fiscal stimulus, some analysts remain hopeful that a general easing could boost Chinese stocks. “We remain positive on the market this year,” said Wang Hanfeng, a China strategist at Goldman Sachs. “With inflation easing, there is a shift towards policy loosening which will help improve the liquidity situation and support the valuation expansion of A-shares.”