Chinese stocks led Asian markets higher today (May 11th) after China's central bank cut interest rates for the third time in six months in a bid to revive the country's sluggish growth.
The People's Bank of China lowered its benchmark rate by 25 basis points to 5.1 per cent yesterday, in response to the release of trade data last week showing imports and exports declined in April.
Analysts quoted by AP said that China's policymakers are trying to walk a fine line between stimulating the economy and avoiding adding even more froth to China's stock market, which has more than doubled in the past year.
The Shanghai Composite Index rose two per cent to 4,292.75 and Hong Kong's Hang Seng gained 0.6 per cent to 27,738.13. Japan's Nikkei 225 was up 1.3 per cent to 19,625.15 and South Korea's Kospi gained 0.7 per cent to 2,10176, while Australia's S&P/ASX 200 edged down 0.1 per cent to 5,629.10.
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