Asia shares sluggish in early trade, China stimulus in focus

Asian shares dipped in early trading on Monday after a weak performance on Wall Street, though China's latest stimulus to shore up the world's second-largest economy was likely to underpin sentiment. China's central bank on Sunday cut the amount of cash that banks must hold as reserves, the second industry-wide cut in two months, adding more liquidity to bolster slowing growth. "It seems that the 'excess liquidity' created by the U.S. Fed is now being augmented by money from China as the capital account is liberalized," said Sean Darby, global equity strategist at Jefferies, in a note to clients. MSCI's broadest index of Asia-Pacific shares outside Japan was down about 0.1 percent, after ascending to a fresh seven-year peak.

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