Surprise inflation rise hits markets

Chinese stocks declined on Thursday after the higher-than-expected inflation in February sparked concerns that it may constrain the monetary easing policies aimed at shoring up the slowing economy.

The benchmark Shanghai Composite Index slid 2 percent to close at 2,804.73 points. The decline was mainly led by stocks of non-banking financial institutions, property developers and coal producers.

Trading turnover contrasted sharply, with the Shanghai and Shenzhen markets completing transactions worth just 355 billion yuan ($54.5 billion), compared to 425 billion yuan on Wednesday.