China's Stimulus Plans Leave Investors Uncertain

The People's Bank of China is expected to cut interest rates on Tuesday, with all 32 market watchers in a Reuters poll predicting a cut in key lending benchmarks for the first time in 10 months. The anticipated loosening of policy is expected to be on the aggressive side, with further easing expected in the coming months. The move comes as authorities battle to shore up a slowing recovery in the world's second-largest economy and ward off the threat of deflation. Meanwhile, US Secretary of State Antony Blinken's visit to Beijing ended with no major breakthrough, with the yuan remaining under pressure and sentiment toward the Chinese currency not boosted by the auspicious start to yuan-denominated trading in certain Hong Kong stocks on Monday.