China's benchmark stock index fell as concern about a global economic slowdown overshadowed efforts by China's central bank to support growth by widening the yuan's trading band and cutting reserve ratios for some small lenders.

Jiangxi Copper Co led declines for materials companies on demand concerns after the cost of insuring against a Spanish default climbed and US consumer confidence dropped. The People's Bank of China expanded the range the yuan is allowed to trade within against the dollar for the first time since 2007, a move that some investors say is possible because yuan appreciation expectations aren't so strong.

"The European debt issue and US economic data will reduce investors' appetite for risk assets," said Dai Ming, a fund manager at Shanghai Kingsun Investment Management & Consulting Co. "The widening of the yuan trading band isn't likely to have a big impact on the stock market."

The Shanghai Composite Index dropped for the first time in five days, losing 2.14 points, or 0.1 percent, to 2,357.03 at the close. The CSI 300 Index retreated 0.3 percent to 2,574.04.

A gauge of material stocks in the CSI 300 fell 0.8 percent on Monday, the most among 10 industry groups. Jiangxi Copper, China's biggest producer of the metal, lost 1.3 percent to 24.83 yuan ($3.93). Yunnan Aluminium Co, China's fifth-largest producer of the light metal, declined 0.7 percent to 5.87 yuan.

The MSCI Asia Pacific Index dropped 0.8 percent after five- year credit-default swaps on Spain surged to a record 502.5 basis points as Prime Minister Mariano Rajoy struggles to prevent the nation from becoming the fourth euro-region member to need a bailout. Stocks also fell after data on April 13 showed confidence among US consumers cooled this month from a one-year high.

Europe and the United States are China's top two export markets, making up about 35 percent of the nation's overseas shipments, according to Shenyin & Wanguo Securities Co.

China cut reserve requirement ratios for county-level banks by 100 basis points, or one percentage point, Xinhua News Agency reported on Friday after the market closed, citing unidentified people familiar with the matter.

The move provides further evidence of policy loosening to support the expansion following a sharp decline in first-quarter economic growth, Lucy Feng, an analyst at Nomura Holdings Inc, wrote in a note. The amount that major banks must set aside as reserves has been reduced twice since November.

The Shanghai Composite has climbed 7.2 percent this year on speculation the government will take measures to boost the economy.

The yuan's trading band was widened to 1 percent from 0.5 percent and took effect on Monday. A more flexible yuan may help central bank Governor Zhou Xiaochuan control inflation and support an economy that the World Bank sees growing 8.2 percent this year.

The currency reform "adds to the attraction of equities", said Lorraine Tan, director of equity research at Standard & Poor's LLC in Singapore. International investors will be attracted to the prospect of a stronger yuan, she said.

Bloomberg News in Shanghai