ASX finishes lower as China steps in

The news: The benchmark ASX 200 finished 0.35% lower on Monday, extending a weaker finish on Wall St on Friday. The People's Bank of China made its biggest liquidity injection into financial markets since the early shocks of the COVID-19 pandemic. The Aussie dollar is buying 63.2 US cents.

The numbers: IT stocks were the biggest movers by sector, losing 2.8% for the day as Wisetech (-2.05), Xero (-3.0) and Megaport -(4.4%) all tumbled. The United States will further tighten China's access to US-manufactured semiconductors as it ramps up restrictions introduced in 2022. Industrials stocks lost 1.0%, while financials were down 0.6% and energy stocks lifted by the same amount.

The context: The Reserve Bank releases its October monetary policy meeting minutes tomorrow, and governor Michele Bullock will speak at a fireside chat in Sydney on Wednesday. The ABS will release building activity data on Wednesday and labour force data on Thursday. Overnight tonight, FOMC member Patrick Harker will speak at a banker's convention in Philadelphia, with many investors looking for a response to last week's overheated inflation figures.