China's Fiscal Plans Impact Stock Markets Amid Election Uncertainty

China and Hong Kong stocks fell as investors reacted to the potential of a 10 trillion yuan stimulus from Beijing. Meanwhile, markets remain cautious ahead of the U.S. elections. China's CSI300 and Shanghai Composite Indexes, along with Hong Kong's Hang Seng, all saw declines in early trading.

China and Hong Kong stock markets experienced a decline on Wednesday, influenced by the potential 10 trillion yuan fiscal stimulus from Beijing. Investors showed caution due to looming U.S. elections.

The blue-chip CSI300 Index dropped by 0.5%, while the Shanghai Composite Index slid by 0.4%. Hong Kong's Hang Seng benchmark reported a 0.6% decrease.

According to Reuters, China's decision to approve more than 10 trillion yuan in additional debt is on the table, possibly invigorating the sluggish economy. This fiscal package could gain momentum if Donald Trump secures a win in the upcoming November 5 election.

(With inputs from agencies.)