Asia-Pacific stock markets showed mostly positive performance on Tuesday, buoyed by a rally in Wall Street and new economic data from China.
The region’s diverse markets exhibited varied responses, reflecting both regional economic conditions and global influences.
China maintained its loan prime rates (LPR) at 3.35% for the one-year rate and 3.85% for the five-year rate. This decision aligns with the expectations of economists surveyed by Reuters.
The one-year LPR is a critical benchmark for most corporate loans, while the five-year LPR serves as a reference rate for mortgages. By keeping these rates unchanged, China’s central bank aims to provide stability amid fluctuating economic conditions.
Reserve Bank of Australia holds interest rates
Minutes from the Reserve Bank of Australia’s August meeting were released on Tuesday, revealing that the central bank decided to keep its benchmark interest rate at 4.35%.
The decision reflects ongoing concerns about inflation, which remains “above target” and “persistent.” Although board members considered raising the rate, they opted to maintain the current level due to insufficient data since the previous meeting.
The RBA also indicated that a rate cut in the near term is unlikely, with future changes dependent on forthcoming economic data.
Nikkei 225 rises 1.8% while Hang Seng index falls 0.42%
Japan’s Nikkei 225 index climbed 1.8% on Tuesday, extending its gains from the previous sessions. The broader Topix index also saw an increase of 1.2%.
Conversely, South Korea’s Kospi index rose by 0.87%, and the Kosdaq index, which tracks smaller companies, increased by 1%.
In contrast, Hong Kong’s Hang Seng index decreased by 0.42%, while mainland China’s CSI300 index was down by the same percentage.
South Korean consumer sentiment retreats
In South Korea, consumer sentiment declined to 100.8 in August from a two-year high of 103.6. Yonhap News reported that the drop was attributed to concerns about a potential U.S. recession and the subsequent stock market downturn.
Despite this decline, a sentiment index above 100 indicates that the number of optimistic consumers still surpasses those who are pessimistic.
Kaisa’s shares surge 14%
In corporate news, Chinese real estate firm Kaisa saw its shares jump by up to 14% following the announcement of a significant debt restructuring agreement.
The company plans to issue $5 billion in senior notes and 4.8 billion yuan in mandatory convertible bonds. This move is part of Kaisa’s efforts to stabilize its financial position amidst challenging market conditions.
U.S. indexes continue winning streak
In the United States, major stock indexes continued their upward trend. The Dow Jones Industrial Average increased by 0.58%, the S&P 500 rose by 0.97%, and the Nasdaq Composite jumped by 1.39%.
This marks the eighth consecutive day of gains for the S&P 500 and Nasdaq, reflecting a sustained period of positive performance in the U.S. equity markets.
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