Investors are waiting for a big burst of stimulus from China before they make more aggressive bets on a recovery, having spent the past few months disappointed by economic data and a lack of meaningful policy response from Beijing.
The yuan plumbed seven-month lows after a smaller-than-expected interest rate cut raised doubts whether policymakers would act forcefully enough to support the economy.
"Ten basis points doesn't do much," said Dong Chen, head of Asia macroeconomic research at Pictet Wealth Management, referring to"But the point is the policy signal. With increasingly more policy measures, hopefully they can turn around this very cautious sentiment.""I can't believe that there is anymore bad news to absorb," said Andy Maynard, head of equities at China Renaissance.
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