Asian Stock Markets Diverge as Japan Rallies While China Slumps
- Japan's Topix surges 1.8% on speculation of extra budget
- Chinese stock markets slide after money-market rates jump
Chinese Stocks Tumble Most in a Month
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Asia’s two biggest stock markets diverged Thursday, with speculation of additional government spending buoying Japan’s Topix index while Chinese equities plunged.
The Shanghai Composite Index sank 6.4 percent for its steepest loss in a month as the overnight money rate, a gauge of liquidity in the financial system, climbed the most since Feb. 6. The Topix closed 1.8 percent higher, with construction shares leading gains after a report lawmakers are considering expanding a spending package ahead of the summer elections.