Asian stocks edged down today (May 5th), reversing earlier gains, after the start of an IPO wave in China dampened investor sentiment and Australia's central bank cut interest rates to a record low to stimulate the sluggish growth.
More than 20 companies are scheduled to go public on Chinese markets starting from today until the beginning of next week.
"Today and tomorrow will be the peak for the latest round of IPOs so people may be selling down their holdings from the secondary market to use the money for IPO subscription," Steven Leung, Hong Kong-based director of institutional sales at UOB Kay Hian, told Bloomberg News.
The Shanghai Composite Index in mainland China lost 4.1 per cent to close at 4,298.71, Hong Kong's Hang Seng slid 1.3 per cent to 27,755.54.
Australia's S&P/ASX 200 remained unchanged at 5,826.50. Markets in Japan, South Korea and Thailand were shut for holidays.
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