China’s stocks fell for a second day after data showed inflation accelerated more-than-estimated and producer prices extended declines.

The Shanghai Composite Index dropped 0.4 percent as of 9:32 a.m. local time. The benchmark gauge pared losses in the last half an hour of trading on Wednesday on speculation state-backed funds were repeating a recent pattern of intervening to prop up the market. The consumer-price index rose 2.3 percent in February from a year earlier, the National Bureau of Statistics said Thursday, compared with the forecast for a 1.8 percent gain. The producer-price index’s declines reached a record 48 months.

Source: Bloomberg