Markets fall as 'unclear' US policy overshadows China's rate cut

The positive impact of China's rate cut was dampened overnight in Asian and US markets as Ben Bernanke failed to clarify the Fed's policy approach in a speech yesterday.

The MSCI Asia Pacific index slipped 1.3% while the S&P 500 dropped 0.7% to 1,315 despite earlier gains following the People's Bank of China move to loosen monetary policy. The markets looked to Bernanke's congressional speech for further policy response but instead the Fed chairman said he would need to assess conditions before deciding if more measures are required to stoke the economy, Bloomberg reports. Japan's Nikkei 225 also tumbled 2.1% to 8,459 while the Hang Seng index fell 0.81% to 18,526. It was also suggested the market moves are a result of suspicion that Chinese author...