Asian stock markets were pummelled today by the possibility of slowing growth in China and a further reduction in US central bank stimulus.

THE US dollar advanced against the euro and the yen after an industry report showed prices paid by US manufacturers jumped last month and the economy’s services industries expanded at a faster pace.

THE British pound, which fell to a four-year low against the euro, may extend declines after the Bank of England said it discussed cutting interest rates this month and said a weaker pound helps the economy.

The dollar was off lows in midday trade, particularly against the yen, on Japanese intervention fears, dealers said.

UNCERTAINTIES over eurozone growth, budget requirements of monetary union and upcoming photo-finish German elections are holding back the euro, confounding predictions earlier this year that it would soar.