China’s Stimulus Fails to Prop up Markets
They’re fighting gravity and losing. China’s central bank shoveled more money into the national economy today than it had in nearly 19 months — 18.77 billion in loans to commercial lenders. But investors saw past that and positive housing news, and Asian stock markets tumbled, with MSCI’s broadest index of Asian stocks outside of Japan falling 0.4 percent to its lowest level in two years. The yuan may have stabilized after last week’s 2 percent devaluation, but investors seem to be betting that the country’s economy will continue to weaken, dragging China’s neighbors down with it.