China’s central bank cut the one- and five-year LPRs by 25 bps to 3.1 per cent and 3.6 per cent, respectively
Asia-Pacific markets were mixed Monday as traders assessed China’s loan prime rate (LPR) announcement, with focus also on Japan’s general election at the end of this week.
China’s central bank cut the one- and five-year LPRs by 25 bps to 3.1 per cent and 3.6 per cent, respectively.
This has been indicated by the People’s Bank of China Governor Pan Gon7sheng on Friday.
ING in a note last week also said that the PBC was likely to release its rate decision for the medium term lending facility on Friday, although it is expected to be left unchanged at 2 per cent after being lowered by 30 bps last month.
Data aside, it is worth monitoring if there are potential further government ministry briefings or a potential announcement of the timing for the National People’s Congress meeting in the week ahead, as stimulus rollout remains a major theme for markets, ING said.
Other key economic data this week will include October inflation figures for Tokyo, as well as advance third-quarter GDP figures from South Korea.
Nikkei 225 closed slightly lower at 38,954.6, while the broad based Topix declined 0.34 per cent to 2,679.91.
South Korea’s Kospi jumped 0.43 per cent, snapping a three day losing streak and closing at 2,604.92, while the small-cap Kosdaq climbed 0.89 per cent to 759.95, also ending a three day losing streak.
Australia’s S&P/ASX 200 closed 0.74 per cent higher at 8,344.4.
Hong Kong’s Hang Seng index declined 1.43 per cent as of its final hour, while mainland China’s CSI 300 gained 0.25 per cent to 3,935.19.
