China's stocks fell, dragging the benchmark index to a one-week low, as faster-than-estimated growth in consumer prices damped speculation the government will ease monetary policy to bolster economic growth.
China Construction Bank Corp. (601939) and Poly Real Estate Group Co. led financial companies lower after government data showed the nation’s inflation rate rebounded to 3.6 percent in March from the previous month’s 3.2 percent. China Cosco Holdings Co., the world’s largest operator of dry-bulk ships, lost 2.2 percent after the U.S. economy added fewer jobs than estimated, dimming the outlook for global trade.
“Rebounding inflation will weigh on investor sentiment,” said Wu Kan, a Shanghai-based fund manager at Dazhong Insurance Co., which oversees $285 million. “Some of the expected monetary easing such as a reserve ratio cut may be delayed.”
The Shanghai Composite Index (SHCOMP) fell 20.78 points, or 0.9 percent, to 2,285.78, the lowest close since March 30. The CSI 300 Index (SHSZ300) lost 1 percent to 2,495.15. Thirty-day volatility in the Shanghai index was at 18, near the highest level in a month. About 7.3 billion shares changed hands on April 6, 17 percent less than the daily average this year.
