Chinese repo rates jump as PBOC looks to fight inflation.

The People Bank of China has refrained from injecting liquidity into money markets for a third consecutive session, adding to concerns that it's clamping down on inflation, which hit 3.1% in September. The PBOC's lack of action has meant that 58B yuan ($9.53B) has drained from the country's interbank market this week. In reaction, China's seven-day repurchase rate - a benchmark for short-term funds - rose 65 basis points, the biggest rise since July 29, to 4.67%. Chinese stocks dropped 0.8%.