Asian shares fall amid concern about trade war’s effect on Chinese growth
China’s bourses stumble despite the People’s Bank of China moving to pump more liquidity into the broader economy
Shanghai — Shares in Asia staggered on Monday as China’s markets stumbled despite its central bank moving to pump more liquidity into the broader economy, as worries grow of a sharp knock to growth from an escalating trade dispute with the US. The People’s Bank of China (PBoC) on Sunday cut the level of cash that banks must hold as reserves, aimed at lowering financing costs as policymakers worry about fallout from the tariff row with the US. Reserve requirement ratios (RRRs) — currently 15.5% for large commercial lenders and 13.5 percent for smaller banks — would be cut by 100 basis points effective October 15, the PBoC said, matching a similar-sized move in April. Asian shares were also hit on Monday as investors in Chinese stocks reacted for the first time to new pressure from Washington and a report that Chinese spies had compromised US hardware. China’s blue-chip CSI300 index was 3.6% lower in morning trade, while the country’s main Shanghai Composite Index lost 3%. The tech-he...
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