March 5, 2011 (Chinavestor) The Central Bank of China raised interest rates by a quarter percentage to to 6.3% to combat inflation. Both key Asian markets for Chinese stocks were closed on Tuesday in observance of a holiday.
The raise came as a surprise to many as it was announced before March inflation data became public. This is the fourth such raise since November 2008 when China announced a massive stimulus package.
With no trading in Asia on Tuesday, it's just index futures that give China ADR traders a sense of direction the market is going to take. Given that TEPCO announced dumpi9ng low radiation water into the ocean, stocks fell in Japan and globally while oil retreated.