The Asia-Pacific Stock Markets showed a mostly positive performance Tuesday. This was boosted by the Wall Street rally and fresh economic data out of China.
Diverse markets in the region exhibited diverse responses that reflected both global and regional influences.
China kept its prime loan rates at 3.5% for one year and 3.85% five years. This is in line with expectations expressed by economists surveyed and Reuters.
For most mortgages, the LPR of five years is used as reference. China’s central banks aims for stability by maintaining these rates despite fluctuating economic conditions.
Reserve Bank of Australia sets interest rates
The minutes of the Reserve Bank of Australia meeting in August were published on Tuesday. They revealed that the central banks decided to maintain its benchmark rate of 4.35%.
In spite of the fact that the board considered increasing the interest rate due to the lack of data collected since their last meeting, the decision was made to keep it at the present level.
RBA has also stated that it is not likely to cut rates in the short term, and any future rate changes will be dependent on upcoming economic data.
Nikkei 225 rises 1.8% while Hang Seng index falls 0.42%
The Nikkei index in Japan rose 1.8% Tuesday. This is a continuation of the gains made during previous sessions. Topix, the broader index, also increased by 1.2%.
The Kospi Index, which measures smaller firms, rose by 0.87 percent, while the Kosdaq Index, also in South Korea, increased by 1 percent.
The Hang Seng Index in Hong Kong fell by 0.42% while the CSI300 Index on mainland China was also down by 0.42%.
South Korean consumer sentiment retreats
Consumer sentiment in South Korea dropped to 100.8 from 103.6, a high reached two years ago. Yonhap News said that concerns over a possible U.S. stock market crash and a recession in the U.S. were to blame for the decline.
A sentiment index of 100 or more indicates that despite this drop, the optimistic consumer still outnumbers the pessimistic.
Kaisa’s shares surge 14%
Following the announcement of an important debt restructuring deal, shares in Chinese real estate company Kaisa have risen by as much as 14%.
The company intends to sell $5 billion worth of senior notes, and 4.8 trillion yuan worth of mandatory convertible bonds. Kaisa is taking this step to improve its financial situation in the face of challenging market conditions.
U.S. Indexes Continue Winning Streak
Major stock indexes in the United States continued to rise. The Dow Jones Industrial Average rose by 0.58 percent, S&P 500 by 0.97% and Nasdaq Composite by 1.39 percent.
The S&P 500 index and Nasdaq have gained for eight consecutive days, indicating a period of sustained positive performance on the U.S. stock markets.
The post Asia-Pacific Markets Edge Up As China Maintains Loan Prime Rates may be updated as new developments unfold.
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