China rate cut spurs Asia stock markets, Europe falls
Source: AP-Excite
By KELVIN CHAN
HONG KONG (AP) — Chinese stocks led Asian benchmarks higher Monday after the country's central bank cut interest rates for the third time in six months, hoping to reinvigorate waning growth in the world's No. 2 economy. European shares retreated ahead of more talks on Greece's bailout.
KEEPING SCORE: France's CAC 40 was down 1.5 percent at 5,013.89 and Germany's DAX shed 0.5 percent to 11,646.87. Futures augured losses on Wall Street after the U.S. stock market ended last week with its best day in two months on good news about the job market. Dow futures fell 0.1 percent to 18,100.00. S&P 500 futures shed 0.1 percent to 2,106.00.
CHINA CUT: On Sunday, the People's Bank of China cut interest rates for the third time in half a year in a fresh bid to shore up sputtering economic growth. The central bank's latest move came after trade data released on Friday showed imports and exports declined in April suggesting domestic and foreign demand are slowing. At the same time, inflation remains low, giving policymakers leeway to ease monetary policy as they strive to keep growth from falling below a 7 percent target.
ASIA SCORECARD: The Shanghai Composite Index in mainland China jumped 3 percent to 4,333.58 and Japan's Nikkei 225 rose 1.3 percent to 19,620.91. South Korea's Kospi gained 0.6 percent to 2,097.38 and Hong Kong's Hang Seng added 0.5 percent to 27,718.20. Australia's S&P/ASX 200 dipped 0.2 percent to 5,625.20. Markets in Southeast Asia mostly rose.
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People walk by an electronic stock board of a securities firm in Tokyo, Monday, May 11, 2015. Japan{2019}s benchmark Nikkei 225 index rose to 19,624.51 points in morning trading as Asian stocks were higher after China{2019}s central bank cut interest rates in the latest move by policymakers to reinvigorate the country{2019}s stumbling economy. (AP Photo/Koji Sasahara)
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