Asia-Pacific Markets Rise as China Holds Lending Rates, Boosting Investor Confidence

Asia-Pacific markets closed higher on Monday as investors reacted calmly to China’s decision to keep its key lending rates unchanged, a move that signaled policy stability at a time of lingering global economic uncertainty. The broadly positive mood reflected confidence that Beijing is taking a measured approach to supporting growth without triggering financial imbalances.

China’s central bank, the People’s Bank of China, held its one-year and five-year loan prime rates at 3% and 3.5% respectively for the seventh consecutive meeting. The decision, which matched market expectations, keeps borrowing costs steady for businesses and households, with the one-year rate guiding most corporate loans and the five-year benchmark influencing mortgage pricing.

Markets across the region responded positively. Hong Kong equities advanced, with the Hang Seng Index rising, while mainland China’s CSI 300 also posted solid gains. In Australia, the S&P/ASX 200 ended the session higher, reflecting optimism across financial and resource stocks as regional risk appetite improved.

Japan’s markets also climbed, led by a strong performance in the Nikkei 225, following last week’s decision by the Bank of Japan to raise its policy rate to a three-decade high. South Korea saw even sharper gains, with the Kospi jumping more than 2%, as investors rotated into technology and growth stocks.

Global sentiment was further supported by positive cues from Wall Street. U.S. stock futures edged higher in early Asian trading after a second straight day of gains on Friday, driven in part by strong moves in Oracle shares following news linked to TikTok’s U.S. operations. Together, the steady policy signals from China and renewed confidence in U.S. tech helped underpin a broadly upbeat start to the week for global markets.

source: cnbc