Asian stocks slipped for the first time in four days amid thin trading, after the regional equity index yesterday climbed to the highest level this year.
Hong Kong stocks dropped, with the benchmark index sliding to a one-week low amid thin trading as retailers declined on concern the government will restrict visitors to the city.
Yuan forwards fell to the lowest level in three weeks after China’s central bank cut the onshore currency’s reference rate to the weakest since September.
China’s benchmark money-market rate fell the most in three weeks after Premier Li Keqiang signaled more policy easing to counter an economic slowdown and the central bank stepped up fund injections.
China’s benchmark money-market rate rose to a three-week high after top policy makers signaled a large-scale loosening of monetary policy is unlikely.
China’s benchmark money-market rate rose by the most in two weeks as tax payments made after the end of each quarter tied up funds in the banking system.
Goldman Sachs Group Inc. joined banks lowering their forecasts for China’s growth as Premier Wen Jiabao ’s campaign to rein in inflation restrains the world’s fastest-growing major economy.
China’s stocks listed in the U.S. retreated from a one-month high after the nation raised interest rates for the third time this year to tame inflation that has quickened to the fastest pace since 2008.
A Chinese manufacturing index dropped to the lowest level since February 2009, bolstering the case for fiscal or monetary loosening to support the expansion of the world’s second-biggest economy.
China may limit interest-rate increases for the rest of this year as Premier Wen Jiabao bets that a slowing economy will help tame inflation after five moves since mid-October.
"The relatively benign assessment of the latest economic situation indicates the top leadership believes there is no need for large stimulus plans."
- Yu Song on Apr 27, 2014