Asia-Pacific Markets Mixed Amid China Rate Cuts and Japan Election Focus
Global Markets:
- Asian Stock Markets : Nikkei up 0.22%, Shanghai Composite up 0.69%, Hang Seng down 0.83% ASX up 0.74%
- Commodities : Gold at $2742.35 (0.54%), Silver at $34.20 (2.84%), Brent Oil at $73.64 (0.56%), WTI Oil at $69.9 (0.72%)
- Rates : US 10-year yield at 4.079, UK 10-year yield at 4.057, Germany 10-year yield at 2.183
News & Data:
- (USD) Building Permits 1.43M vs 1.45M expected
- (USD) Housing Starts 1.35M vs 1.35M expected
Markets Update:
Asia-Pacific markets had a mixed performance on Monday as traders reacted to China’s loan prime rate (LPR) announcement and anticipated Japan’s general election later this week. China’s central bank cut its one-year and five-year LPR by 25 basis points, bringing them to 3.1% and 3.6%, respectively. This move had been hinted at by the People’s Bank of China (PBOC) Governor Pan Gongsheng on Friday.
Last week, ING had forecasted that the PBOC would likely keep its medium-term lending facility rate unchanged at 2%, following a 30-basis-point reduction in the prior month. ING also mentioned that further government announcements, including details about the National People’s Congress, could impact market sentiment, especially with stimulus measures in focus.
Other notable economic data expected this week includes October inflation data for Tokyo and South Korea’s advance third-quarter GDP figures.
In market movements, Japan’s Nikkei 225 hovered around the flatline, with the broader Topix slightly down by 0.17%. South Korea’s Kospi rose 0.83%, while the Kosdaq gained 1.05%. Australia’s S&P/ASX 200 opened up 0.64%, and Hong Kong’s Hang Seng index increased by 0.84%, with mainland China’s CSI 300 up 0.19%.
In the U.S., both the S&P 500 and Dow Jones Industrial Average hit record highs on Friday. The S&P 500 gained 0.40%, the Dow added 36.86 points, and the Nasdaq Composite rose 0.63%, boosted by Netflix’s post-earnings surge.
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