BEIJING: Asian stock markets fell Monday and oil prices gave up some of their gains after Chinese regulators freed up extra money for bank lending amid a trade dispute with Washington.
KEEPING SCORE: The Shanghai Composite Index fell 0.2 percent to 2,883.20 and Tokyo’s Nikkei 225 lost 0.5 percent to 22,409.55. Hong Kong’s Hang Seng retreated 0.4 percent to 29,213.98 and Sydney’s S&P-ASX 200 declined 0.3 percent to 6,208.30. India’s Sensex shed 0.2 percent to 35,625.38 while Seoul’s Kospi advanced 1 point to 2,357.85. Benchmarks in Taiwan and Singapore fell while New Zealand and Bangkok advanced.
CHINA LENDING: Beijing freed up an about $100 billion for additional bank lending in a move financial analysts said might help to reassure investors rattled by trade tensions with Washington. The cut in the amount of money banks are required to hold in reserve, the second this year, is one of a series forecasters had expected before the dispute over China’s trade surplus and technology policy erupted. The central bank said the move is aimed at facilitating debt-for-equity swaps meant to help clear away a backlog of nonperforming bank loans owed by state companies.
WEEK AHEAD: The United States is due to report quarterly economic growth on Thursday. On Friday, Japan and South Korea report monthly factory output and the European Union announces June inflation.
CURRENCY: The dollar declined to 109.53 yen from Friday’s 109.97 yen. The euro retreated to $1.1651 from $1.1657.
ENERGY: Benchmark U.S. crude fell 19 cents to $68.39 per barrel in electronic trading on the New York Mercantile Exchange. The contract jumped $3.04 on Friday to $$68.58. Brent crude, used to price international oils, dropped $1.37 to $73.95 per barrel in London. It gained $2.52 the previous session to close at $75.32.
