A slew of Asian earnings are due in the coming weeks, offering up more cues on corporate profits amid high global interest rates and softer economic conditions
Most Asian stocks kept to a tight range on Monday as focus remained on the upcoming earnings season, while Chinese markets gained in choppy trade after the People’s Bank cut rates slightly more than expected.
A slew of Asian earnings are due in the coming weeks, offering up more cues on corporate profits amid high global interest rates and softer economic conditions.
Shanghai Shenzhen CSI 300 and Shanghai Composite indexes gained nearly 0.7% in volatile trade after the People’s Bank of China cut its benchmark loan prime rates (LPR) slightly more than expected.
The LPR cut comes amid a flurry of stimulus measures from Beijing, and was largely expected by markets.
Beijing over the past month unveiled its most aggressive round of stimulus measures yet, flagging both monetary and fiscal steps to improve economic growth.
But while enthusiasm over the new measures initially drove Chinese stocks to two-year peaks, they pulled back in recent sessions as investors were underwhelmed by a lack of details on the timing and scale of the new measures.
Hong Kong’s Hang Seng index declined 0.2%, reflecting limited optimism among foreign investors over China’s interest rate cut.
A series of recent economic numbers also showed little improvement in the world’s second biggest economy.
Still, optimism over more stimulus in China saw Australia’s ASX 200 gain 0.6%. The index is heavily exposed to trade with China.
Wider Asian markets kept to a tight range, with focus remaining on the third-quarter earnings season, while investors also sought more cues on interest rates in major economies.
Nikkei 225 index added 0.3%, while the TOPIX was flat. Japan’s general elections are set to take place later in October, while the BoJ is also set to meet at the end of the month.
KOSPI was flat, while futures for India’s Nifty 50 index pointed to a mildly positive open, with the index set to make another attempt to cross 25,000 points.
