Asian shares stepped back on Tuesday after China cut its economic growth target and pledged measures to support the economy amid growing challenges from rising debt and a dispute over trade and technology with the United States.
Australian shares dropped 0.6 percent while South Korea’s Kospi lost 0.5 percent. MSCI’s broadest index of Asia-Pacific shares outside Japan dipped 0.2 percent and Japan’s Nikkei dropped 0.3 percent.
China cut its growth target for this year to 6.0 to 6.5 percent, in line with expectations, from around 6.5 percent last year.
Premier Li Keqiang also said the country sees budget deficit of 2.8 percent of GDP and the Finance Ministry set quota for local government’s special bond issues at 2.15 trillion yen, 0.8 trillion yen above last year.
Source : Reuters