- Stocks fell slightly on Tuesday as the global equity rally faltered and investors worried about China's sluggish post-pandemic recovery.
- Shares fell from Hong Kong and Shanghai to Tokyo and Seoul, while US benchmark futures fell after Wall Street was closed for a holiday Monday. Australian equities outperformed the market, eking out a small gain.
- Following a Monday selloff across the region that hit China's large tech companies, the moves indicated increased concern about Chinese growth and the lack of new stimulus from Beijing. Chinese real estate companies were among the biggest losers on Tuesday, as investors were disappointed by the magnitude of bank lending rate cuts, with the 10-basis-point reduction to the five-year rate coming in lower than some forecasts.
- The Australian dollar fell more than 0.6% after minutes from the most recent central bank meeting, when rates were unexpectedly raised, revealed that the case for a move in either direction was finely balanced.
- Short-term yields on Australian government bonds changed direction and fell following the release of the central bank minutes. After a day off from trading, US Treasury yields rose.
