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Asia stocks mixed after China tightening; Hang Seng down 1.22%

Published 05/03/2010, 02:57 AM
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Investing.com – Asian stocks were mixed on Monday, after China ordered banks to raise the amount of money they hold in reserves for a third time this year and Greece secured a euro zone-IMF rescue package.

Hong Kong's Hang Seng Index was down 1.22%; Australia's S&P/ASX 200 Index dropped 0.46%; and South Korea's Kospi Composite shed 1.17%.

But the Shanghai Composite Index gained 0.08%.

Earlier Monday, official data showed that Australian house prices rose the most since at least 2003 in the three months through March. The report came a day before the Reserve Bank of Australia was set to announce a key interest rate decision.

The move by China was a fresh effort to dampen inflation pressures in the economy, the world's third-largest, as the government attempts to cool a credit boom without hiking interest rates.

The outlook for European markets, meanwhile, was quite dim: France’s CAC 40 futures indicated a fall of 0.48%; Germany's DAX futures pointed to a drop of 0.22%; and EURO STOXX 50 futures indicated a slide of 0.47%.

Later in the day, the Institute for Supply Management, a research group, was due to release the results of a closely watched monthly survey of purchasing managers in the U.S. manufacturing sector.

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