- Stocks in Asia remained flat, while major currencies such as the offshore yuan and the Australian dollar fell as investors weighed signs of improved relations between Washington and Beijing, as well as hopes for additional stimulus in China to bolster its flagging recovery.
- Equities were flat in Japan, down in China and South Korea, and up in Australia. After initially rising in early Asian trading, US equity futures were flat.
- Currency markets have become more volatile. The offshore yuan fell alongside the New Zealand dollar, while the Australian dollar reversed an early gain to fall. The yen was trading flat after reversing an early decline that reached levels not seen since November of last year. The dollar index rose slightly.
- The moves reflect the uncertainty surrounding China's economy and the scope of any potential stimulus to jump-start its sputtering recovery.
- According to economist forecasts, the country will cut its one and five-year loan prime rates in decisions expected Tuesday, following the reduction of a key lending rate last week.
