Markets were surprised by central bank’s caution knocking optimism over Beijing’s pledges to support China’s slowing economy
Chinese mainland stocks also closed down as Covid concerns outweighed the boost of support pledges from Beijing
China stocks closed up after Beijing promised a cut in the reserve requirement ratio, while Hong Kong and Tokyo were buoyed by falls in US bond yields
Chinese investors were in downbeat mood as Covid outbreaks and weak imports dented sentiment while traders in Hong Kong and Tokyo shrugged off soaring US prices
But the picture elsewhere was less hopeful as world stocks slipped to their lowest levels in almost a month
Chinese stocks suffered their biggest fall in a month as Covid restrictions and inflation worries weighed heavily on investors
Economists expect Beijing to step in with monetary easing measures to prop up the economy and make sure China hits its 5.5% growth target for this year
Fed minutes released yesterday reveal it’s ready to take an uncompromising approach to soaring prices and inflation causing headaches at home and abroad