OVERNIGHT

Here's the latest overnight from China as the PBOC dumped a brunch of money into the market, the largest amount in almost three years, the WSJ is reporting.

SHANGHAI—China’s central bank is putting the largest amount of cash into the financial system in nearly three years, using a weekly market operation to pre-empt a holiday-induced funding squeeze and offset rapid capital outflows.

The People’s Bank of China offered 340 billion yuan ($51.89 billion) of short-term loans, known as reverse repurchase agreements, to commercial banks in a routine money market operation Thursday.

The central bank provided 440 billion yuan via similar tools Tuesday, the first leg of its twice-a-week liquidity-management exercises.

Given the maturity of 190 billion yuan of previously issued loans, the PBOC’s net cash injection this week totals 590 billion yuan, the biggest of its kind since early February 2013, when it reached 662 billion yuan.

The move follows an aggressive pump-priming exercise by the PBOC last week, when the central bank offered more than 1.5 trillion yuan in gross short- and medium-term lending to banks.

Capital flight has been on the rise as the negative news put investor confidence on the wane. Some of this huge injection no doubt is aimed at slowing down that capital flight. The DJIA ended Wednesday down 1.38%, the Nasdaq fell nearly 2.2% and the S&P 500 dropped 1.09% in what many said was a negative reaction to the Fed action to take no action.

Asian shares for the most rallied Thursday as oil became less of a concern for the moment following  Russia's mention of a possible deal with OPEC that might rectify the over supply situation. The dollar closed slightly higher against a basket of currencies, the Nikkei eked out a small gain of 0.3%, U.S. Crude oil fell 21 cents.