The Chinese interest-rate swaps fell for the first time in three days amid speculation that the Chinese government will ease the monetary policy to support the economy's expansion in the world's second-largest economy.

On the other hand, the Chinese central bank this month decided to decrease the required amount of cash reserve that banks must set aside as reserves for the first time since 2008, amid Europe's escalating debt crisis that dimmed the global-economy outlook for exports and growth, where the 50 basis-point decrease in reserve-requirement ratios took effect last week.