FXstreet.com (Barcelona) - Asian equities are mostly lower across the region today, as Chinese equities are underperformers once again. The local press noted that the PBOC would postpone RRR cuts, this time in favor of government bond purchases in the secondary market in order to boost money supply. Also not helping sentiment was a comment from Brazilian miner Vale declaring that China's "golden years" are gone, and that signs of a recovery are "very weak".

On that note it’s probably worth noting that DB's Jun Ma currently expects no recovery in Chinese growth in Q3 and a very mild one in Q4. He expects future policy responses to be largely muted as he gets the sense that there is strong opposition within the system to monetary and credit expansion and the scope for further fiscal stimulus is also limited.

According to Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank, “Authorities also don't have plenty of headroom to ease rates further as we've likely seen the bottom in Chinese prices with inflation expected to rise again from August.”