Markets diverge as China economic pledges disappoint [Video]

Stock markets diverged Friday as traders were disappointed by China’s latest boosts to its beleaguered economy and looked ahead to a key US Federal Reserve meeting next week.

A tepid week was on course for a damp finish, with Wall Street offering a negative lead after fresh data pointing to a pick-up in inflation.

Hong Kong and Shanghai both tumbled as investors shrugged at Beijing’s pledge to introduce measures aimed at “lifting consumption vigorously” as part of a drive to reignite growth in the world’s number two economy.

President Xi Jinping and other key leaders said at the annual Central Economic Work Conference they would implement a “moderately loose” monetary policy, increase social financing and reduce interest rates “at the right time”.

The gathering came after Beijing began unveiling in September a raft of policies to reverse a growth slump that has gripped the economy for almost two years.

“We’re …