China stocks plummet 5% on rate rise fears

The mainland Chinese stockmarket suffered its worst decline in about a year on Friday, as talk of further imminent rate hikes spooked investors.

China raised rates for the first time in almost three years last month, while yesterday's 4.4% inflation figure heightened concerns of more rate increases in the near-term. The impact of a rise in the dollar contributed to the widespread decline, with the Shanghai Composite Index plunging 5.16%. Commodities were also hit, with Shanghai copper futures plunging to the 5% downside limit. Elshewhere, Hong Kong's Hang Seng fell 1.96%, Tokyo's Nikkei 225 lost 1.39% and Sydney's S&P/ASX 200 dipped 0.76%.