Asia-Pacific markets experienced notable gains on Monday as investors reacted to the People’s Bank of China’s decision to maintain its loan prime rates. For the seventh consecutive meeting, the central bank kept the one-year loan prime rate steady at 3% and the five-year rate at 3.5%. This stability aligns with expectations set by a recent Reuters survey, reflecting ongoing efforts to manage borrowing costs for consumers and businesses amidst fluctuating economic conditions.
In Hong Kong, the Hang Seng index climbed by 0.55%, while the mainland’s CSI 300 index saw a more significant increase, advancing 0.95% to close at 4,611.62. Australian markets also showed positive movement, with the S&P/ASX 200 rising 0.91% to finish at 8,699.9.
Japan experienced substantial gains as well, with the Nikkei 225 rising by 1.81% to reach 50,402.39, and the Topix index increasing by 0.64% to close at 3,405.17. This surge followed the Bank of Japan’s decision to lift its policy rate by 25 basis points to 0.75%, marking a three-decade high and signaling a shift toward tightening monetary policy.
South Korea’s markets also saw robust growth, with the Kospi index jumping 2.12% to 4,105.93, and the small-cap Kosdaq gaining 1.52% to reach 929.14. Meanwhile, U.S. futures demonstrated a slight increase on Monday during early Asian trading, setting the stage for a holiday-shortened week ahead.
In the United States, stock markets enjoyed a second consecutive day of gains last Friday, bolstered largely by strong performance from Oracle. The shares surged by 6.6% following TikTok’s announcement of a sale of its U.S. operations to a new joint venture involving Oracle and private equity firm Silver Lake. The Nasdaq Composite rose by 1.31% to close at 23,307.62, while the S&P 500 added 0.88%, finishing at 6,834.50. Additionally, the Dow Jones Industrial Average advanced by 183.04 points, or 0.38%, to settle at 48,134.89.
Overall, the momentum across the Asia-Pacific markets reflects a cautiously optimistic outlook as investors navigate a complex economic landscape marked by central bank actions and strategic corporate decisions.
