China rate hike prompts Asia stocks slowdown

Most Asian stocks slipped Wednesday on fears of a slowdown in the Chinese economy after Beijing announced its first interest rate rise in three years. Traders grew concerned that any easing in the world's second biggest economy could hurt the exports of other countries looking to China's growth as the key to recovery from the global downturn. Tokyo tumbled 1.65 percent, or 157.85 points, to 9,381.60 and Hong Kong had slipped 0.65 percent by the break.Sydney was 0.66 percent, or 30.8 points, lower at 4,624.9, with resources firms hit as they rely heavily on Chinese demand.Shanghai was 1.16 percent up in the afternoon and Seoul rose 0.71 percent, adding 13.12 points to end at 1,870.44. The People's Bank of China announced late Tuesday it would raise the benchmark one-year lending and deposit rates by 25 basis points each, as Beijing tries to contain inflation and soaring property prices. It was the first rate rise since December 2007.