China’s Smaller-Than-Expected Rate Cut Sends Stocks Lower

A man is reflected on an electric monitor displaying a stock quotation board outside a bank in Tokyo, Japan, on June 5, 2023. Issei Kato/Reuters

HONG KONG/LONDON—European and Asian stocks fell on Tuesday after China cut interest rates by less than expected and the market awaited more details on Beijing’s plans to shore up a stuttering economic recovery.

China cut its benchmark loan prime rates (LPR) for the first time in 10 months on Tuesday, with a smaller-than-expected 10-basis point reduction in the five-year LPR.