(Bloomberg) — Chinese equities slipped as a reduction throughout the nation’s mortgage reference rate didn’t dispel the gloom surrounding the world’s no. 2 economy. The dollar tracked a rise in US yields.

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Stocks on the mainland and in Hong Kong slipped Tuesday, while those in Japan reversed early gains. Benchmarks in Australia and South Korea also retreated. European futures were lower and contracts for the Nasdaq 100 fell after US markets were shut Monday for a vacation.

The moves in Chinese equities came after domestic banks cut a key reference rate for mortgages by a record amount, a sign that the nation was ramping up support for the property sector in a bid to revive demand. An index of China developer stocks initially jumped but quickly unwound the vast majority of the gains.

The cut to the five-year loan prime rate was a “good gesture from the commercial banks but still now the property problem isn’t with reference to the mortgage rate,” said Willer Chen, an analyst at Forsyth Barr Asia Ltd. The move may “barely boost the property demand but I won’t expect much.”

Gains in Chinese equities on Monday fell in need of expectations in the first session back following the Lunar Recent Yr holiday. A rise in trading volume for several exchange-traded funds throughout the country offered a clue that state-backed funds were continuing to support the market.

A gauge of worldwide stocks traded around 1% from its peak after the S&P 500 set a fresh record last week, while the region-wide Euro Stoxx 50 hovered near a two-decade high. Further gains for Japanese stocks have placed the Nikkei 225 index inside roughly 1% of its 1989 peak.

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The Thai baht fell after Prime Minister Srettha Thavisin called for an unscheduled central bank meeting to cut rates of interest. The dollar strengthened against most of its Group-of-10 peers. Yields on US Treasuries rose as trading resumed in Asian hours after the market was shut Monday. China’s 10-year bond rose as yields fell following the cut throughout the loan prime rate.

“Confidence is low right away and there could also be a must stabilize it,” Moh Siong Sim, currency strategist for the Bank of Singapore, said on Bloomberg Television regarding China’s latest effort to support the economy. “Monetary policy is being eased, that’s vulnerable to exert downward pressure on yields,” for Chinese bonds, he said.

Turning Point

Earnings from bellwether Nvidia Corp. Wednesday may provide recent impetus for equities as investors try to gauge the strength of the worldwide economy. The chip giant has surpassed the market value of Amazon.com Inc on the expectation it’s going to be an infinite winner from artificial intelligence developments.

“Nvidia results on Wednesday may thoroughly be a turning point for the markets,” Charles-Henry Monchau, chief investment officer for Banque Syz, said on Bloomberg Television. “The market relies on only a number of large-cap growth stocks and within the event that they disappoint for any reason there could also be a risk of a pullback.”

In Australia, BHP Group, the world’s largest miner, reported $6.57 billion in underlying profits, lower than consensus estimates, and said demand from top customer China was healthy despite weakness in housing.

In other corporate news, Capital One Financial Corp. agreed to buy Discover Financial Services in a $35 billion all-stock deal which will form the largest US bank card company by loan volume.

Other potential catalysts for markets this week include Fed January meeting minutes to be released Wednesday and Eurozone inflation data due Thursday.

Elsewhere, gold was little modified after edging higher Monday to trade around $2,018 per ounce. West Texas Intermediate, the US oil price, edged higher against the backdrop of ongoing tensions throughout the Red Sea, a crucial trade route.

A variety of the important thing events this week:

• Reserve Bank of Australia Feb. meeting minutes, Tuesday

• China loan prime rates, Tuesday

• BHP Group Ltd earnings, Tuesday

• European Central Bank publishes euro-area indicator of negotiated wage rates, Tuesday

• Rio Tinto Plc earnings, Wednesday

• Eurozone consumer confidence, Wednesday

• Nvidia Corp earnings, Wednesday

• Federal Reserve Jan. meeting minutes, Wednesday

• Atlanta Fed President Raphael Bostic speaks, Wednesday

• Eurozone CPI, PMI, Thursday

• European Central Bank issues account of Jan. 25 meeting, Thursday

• Fed Governor Lisa Cook, Minneapolis Fed President Neel Kashkar speak, Thursday

• China property prices, Friday

• European Central Bank executive board member Isabel Schnabel speaks, Friday

A variety of the foremost moves in markets:

Stocks

• S&P 500 futures fell 0.3% as of two:49 p.m. Tokyo time

• Nikkei 225 futures (OSE) fell 0.2%

• Japan’s Topix fell 0.2%

• Hong Kong’s Hang Seng fell 0.1%

• The Shanghai Composite was little modified

• Euro Stoxx 50 futures fell 0.3%

Currencies

• The Bloomberg Dollar Spot Index rose 0.1%

• The euro fell 0.1% to $1.0768

• The Japanese yen fell 0.2% to 150.39 per dollar

• The offshore yuan was little modified at 7.2083 per dollar

• The Australian dollar fell 0.2% to $0.6529

Cryptocurrencies

• Bitcoin was little modified at $51,903.01

• Ether fell 1.5% to $2,924.45

Bonds

• The yield on 10-year Treasuries advanced two basis points to 4.30%

• Japan’s 10-year yield was unchanged at 0.730%

• Australia’s 10-year yield advanced one basis point to 4.18%

Commodities

This story was produced with the assistance of Bloomberg Automation.

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