Asian stocks mirrored the global rally seen around the world early Tuesday, induced by China’s move over the weekend to stimulate its cooling economy.
The People’s Bank of China (PBoC) lowered the reserve requirement ratio (RRR) for all banks by 100 basis points on Sunday, marking the deepest single reduction since 2008 and the second industry-wide cut in two months. However, Asian markets failed to get a boost from the supportive measure on Monday as concerns of further crackdowns on speculative trading by Chinese authorities weighed on sentiment.
“China’s monetary policy has been much too tight based on international standards and the RRR cut corrects that to some extent,” Uwe Parpart, managing director and head of Research at Reorient Financial Markets, told CNBC Asia’s “Squawk Box.” “We expect more of that this quarter.”
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