Chinese stocks slipped as concern that recent gains may have been excessive tempered speculation that policy makers will boost monetary stimulus. Australia’s dollar fluctuated before a central bank interest-rate decision, while commodities slid.
The Shanghai Composite Index retreated 2.1 percent by 11:16 a.m. in Hong Kong, while the Hang Seng China Enterprises Index fell 1.1 percent. The S&P/ASX 200 Index advanced 0.3 percent in Sydney as Australia & New Zealand Banking Group Ltd. reported a record cash profit. The Australian dollar bought 78.56 U.S. cents. The Bloomberg Commodity Index decreased 0.2 percent as U.S. oil held below $59 a barrel.
Chinese equity markets have rallied this year as investors bet policy makers will further reduce borrowing costs and lenders’ reserve requirements to arrest sliding growth and promote domestic consumption. Australia is projected to cut benchmark rates for the second time this year Tuesday. Markets in Japan, South Korea and Thailand are closed for holidays.