CSI300 up 4, Shanghai Composite up 3.2
Hang Seng 7.7 as traders take profits
Yuan down, bond futures bounce from lows
Traders see test ahead in coming sessions
SHANGHAI, Oct 8 Reuters China39;s runaway stocks rally began losing steam on Tuesday and Hong Kong shares slumped as officials disappointed markets by providing few specific details on plans to bolster China39;s slowing economy.
Mainland markets roared back from a weeklong break, hitting twoyear peaks with turnover surging past a trillion yuan inside the first 20 minutes of trade. But the benchmarks were soon off their highs and proxies for Chinese growth slipped across Asia as the stimulusbacked buying frenzy showed signs of cooling.
The Shanghai Composite was up 3.1 in afternoon trade and the bluechip CSI300 rose 4, having earlier surged as much as 10.1 and 10.8 respectively. Hong Kong39;s Hang Seng, catapulted to be the topperforming major market this year aided by blistering gains in recent sessions, slid 7.7.
The Australian dollar fell 0.4 and the yuan headed for its sharpest drop in a year. Iron ore and other industrial metal prices which are sensitive to China39;s economic outlook wobbled lower from morning highs.
European futures fell 0.8.
Economic planner chairman Zheng Shanjie told reporters that China was fully confident of achieving economic targets and will pull forward 200 billion yuan from next year39;s budget to spend on investment projects and support local governments.
Markets were…