Global Stocks: Chinese stocks rebounded amid PBOC actions

U.S. stock indices fell at the end of Tuesday session losing gains accumulated at the session's beginning.

The People's Bank of China cut its key lending and deposit rates by 0.25% to 4.6% and 1.75% respectively. This information supported equities at the beginning of the session.

The Dow Jones Industrial Average dropped 204.91 points, or 1.3%, to 15,666.44. The S&P 500 fell 25.59 points, or 1.4%, to 1,867.61. The Nasdaq Composite lost 19.76 points, or 0.4% to 4,506.49.

Meanwhile a report from the Conference Board showed that the index of consumer confidence in the U.S. rose to 101.5 in August from 91.0 in July (revised from 90.9). Economists expected the index to come in at 93.4. The index of expectations improved to 92.5 in August from 82.3 in July, while the current situation index advanced to 115.1 from 104.0.

This morning in Asia Hong Kong Hang Seng recovered 1.11%, or 236.60 points, to 21,641.56. China Shanghai Composite Index rose 2.72%, or 80.56 points, to 3,045.53. The Nikkei added 2.57%, or 457.08 points, to 18,263.78.

Chinese stocks revived and helped other Asian markets rebound amid new supportive measures from the government. On Tuesday the People's Bank of China cut its key lending and deposit rates by 0.25% to 4.6% and 1.75% respectively.

The PBOC also said it would require large banks to keep less money in reserve, making it easier for banks to lend money (effective from September 6).