Asia-Pacific markets mostly rose Monday as investors digested monetary policy decisions from Japan and China as well as the U.S. Federal Reserve’s sharp rate cut last week.
Markets in Japan were closed for holiday.
The Bank of Japan also kept its benchmark interest rate steady at around 0.25% on Friday. Japan’s authorities were closely watching the markets for signs of any rebuild of yen carry trades which could heighten market volatility, Japan’s top currency diplomat said.
In Hong Kong, the Hang Seng Index stepped back 11.46 points, or 0.1%, to 18,247.11.
The Reserve Bank of Australia starts its two-day policy meeting on Monday, where central bankers will decide on the country’s monetary policy path on Tuesday. Analysts expect the RBA to keep benchmark interest rate steady at 4.35%, with focus on whether the central bank will veer away from its hawkish stance, after the Fed kicked off an easing cycle with a bold 50-basis-points rate cut.
CHINA
In Shanghai, the CSI 300 added 11.71 points, or 0.2%, to 3,212.76.
Data last Friday showed China’s youth unemployment rate rose for a second straight month to its highest level this year, according to the National Bureau of Statistics, as the labour market cools down amid a weakening economy.
Despite growing calls for lower interest rates, the People’s Bank of China on Friday unexpectedly left its key benchmark rates on hold.
China’s central bank supplied 234.6 billion yuan ($33.29 billion U.S.) to the banking system through open market operations, according to a statement on Monday, in a move to “maintain reasonably sufficient liquidity in the banking system at the end of quarter.” It also lowered the 14-day reverse repo rate to 1.85% from 1.95% set in the previous funding operation in February.
Separately, the U.S. is reportedly mulling a ban on importing and selling cars from China that carry software and hardware for communications or autonomous driving systems.
Singapore’s headline and core inflation both rose more than expected in August, up 2.2% and 2.7% year on year, respectively.
The overall CPI was higher than the forecast of 2.15% in a Reuters poll but cooler than 2.4% in the previous month. The core CPI, which strips out accommodation and private transport, was higher than the 2.6% forecast and 2.5% in July.
In other markets,
In Korea, the Kospi edged up 8.64 points, or 0.3%, to 2,602.54
In Singapore, the Straits Times Index recovered 13.78 points, or 0.4%, to 3,638.54.
In Taiwan, the Taiex index jumped 126.11 points, or 0.6%, to 22,286.53.
In New Zealand, the NZX 50 declined 74.33 points, or 0.6%, to 12,404.17.
In Australia, the ASX 200 slid 56.52 points, or 0.7%, to 8,152.95.