Shanghai stocks fall most in over 4 months as economic, trade worries weigh

China stocks fell on Monday, with the Shanghai index falling the most in more than four months, as investors remained wary about the economic health of the world's second-largest economy amid uncertainties around a proposed Sino-U.S. trade deal. ** The blue-chip CSI300 index fell 1.8% to 3,902.98, marking its steepest single-day decline since Aug.5, while the Shanghai Composite Index dropped 1.8% to 2,909.97 points, its worst session since July 8.

** China's producer prices fell the most in more than three years in October, as the manufacturing sector weakened on declining demand and a knock from the Sino-U.S. tariff war, reinforcing the case for Beijing to keep the stimulus coming. ** In contrast, China's consumer prices rose at their fastest pace in almost eight years, driven mostly by a surge in pork prices as African swine fever ravaged the country's hog herds. Some analysts say the CPI rise could become a concern for policymakers looking to introduce measures to prop up demand.

** "Judging from the modest interest rate cut on MLF loans earlier this month, the rising inflation somewhat hindered (the easing) of China's monetary policy," China Merchants Securities noted in the report. ** China's central bank cut the interest rate on its one-year medium-term lending facility (MLF) loans for the first time since early 2016, as policymakers work to prop up a slowing economy hit by weaker demand at home and abroad.

** There was renewed uncertainty about the prospects of a preliminary Sino-U.S. trade deal. ** U.S. President Donald Trump said on Saturday that trade talks with China were moving along "very nicely," but the United States would only make a deal with Beijing if it was the right deal for America.

** That came after his comments on Friday that he has not agreed to rollbacks of U.S. tariffs sought by China. ** Around the region, MSCI's Asia ex-Japan stock index was weaker by 1.26%, while Japan's Nikkei index closed down 0.26%.

** At 0707 GMT, the yuan was quoted at 7.0055 per U.S. dollar, 0.14% weaker than the previous close of 6.9954. ** So far this year, the Shanghai stock index is up 16.7% and the CSI300 has risen 29.6%, while China's H-share index listed in Hong Kong is up 4.6%. Shanghai stocks have declined 0.65% this month.

** As of 0708 GMT, China's A-shares were trading at a premium of 29.05% over the Hong Kong-listed H-shares.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)