China stocks rise after interbank lending rate cut

China stocks ended Monday firmer, as investors hoped for more stimulus measures to shore up the slowing economy after an interbank lending rate cut. ** The blue-chip CSI300 index rose 0.8%, to 3,907.93, while the Shanghai Composite Index added 0.6% to 2,909.20.

** China's central bank unexpectedly trimmed a closely watched lending rate on Monday, the first such cut in more than four years and a signal to markets that policymakers are ready to act to prop up slowing growth. ** Analysts say the cut also shows the central bank is keen to ease investor worries that higher retail inflation would prevent it from delivering fresh stimulus.

** "I expected an easing move from the PBOC, just didn't know when," said a Hong Kong-based portfolio manager. "The (high) Consumer Price Index (CPI) was only pigged CPI. Everything else is in big trouble." ** China's strongest consumer inflation in nearly eight years won't deter the central bank from cutting a key interest rate next week, as slowing economic growth is a bigger concern for policymakers, traders and fund managers said.

** Investors were also eyeing developments in the Sino-U.S. trade talks. ** China and the United States had "constructive talks" on trade in a high-level phone call on Saturday, state media Xinhua said.

** U.S. President Donald Trump had not yet agreed to remove any tariffs as part of a deal, and the size of China's commitment to purchase U.S. farm products was not yet clear, Commerce Secretary Wilbur Ross said on Friday in an interview on Fox Business Network. ** Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.41%, while Japan's Nikkei index closed up 0.49%.

** At 07:04 GMT, the yuan was quoted at 7.0139 per U.S. dollar, 0.1% weaker than the previous close of 7.0072. ** As of 07:05 GMT, China's A-shares were trading at a premium of 29.19% over the Hong Kong-listed H-shares.

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