Stock Groups

China loan prime rate, Nasdaq, oil


SINGAPORE — Markets in Asia-Pacific mostly rose on Thursday as China cut its key lending rates. Wall Street was sunk with the Nasdaq entering correction territory, and U.S yields retreating after recent gains.

Hong Kong’s Hang Seng index saw gains. It jumped 3% due to rising tech and property stocks. Mainland China market closed in marginally negative territory with Shanghai Composite closing at 3,555.06 and Shenzhen Component at 14,198.30.

China on Thursday cut its one-year loan prime rateIt was lowered by 10 basis point, and its five-year LPR (which influences the pricing for home mortgages) was reduced by 5 basis points. This is the first reduction since April 2020.

Chinese property firms that have suffered from a severe debt crisis in China responded by boosting their stock prices. As a result, the Hang Seng Mainland Properties index jumped 4.26%. SunacSurplus of 12%, the stock rose ShimaoThe increase in sales was also close to 10% Country GardenIt was above 3%

Capital Economics reports that the rate reductions continue to be a part of the PBOC’s effort to reduce borrowing costs.

“Mortgages should now be slightly less expensive which will help to boost housing demand. Sheana Yue from China, an economist for the firm, stated that the PBOC had already prompted banks to increase mortgage lending volume.

Yue stated that targeted support for property buyers appears to have limited one of the most serious downside risks facing our economy.

Tech stocks rose also in Hong Kong with the Hang Seng Tech index increasing more than 4%. TencentThe increase was 6.42% AlibabaIt grew by 5.23% and MeituanThe rise was more than 9%

Others markets in Asia-Pacific

Japan’s Nikkei 225The Topix also rose, rising 1.11% to close to 27,772.93, and also climbing nearly 1% up to 1,938.53. Sony rose almost 6% after tumbling over 12% the day before after Microsoft on Tuesday said it was buying video game publisher Activision Blizzard for almost $69 billion.

Trade data on Thursday showed that Japan’s exports rose 17.5% in December compared to the year before — higher than the 16% expected in a Reuters poll, according to Reuters.

South Korea is another option. KospiAustralia had a 0.8% rise, but the Australian’s were 0.8% lower ASX 200Inched up 0.4% to close at 7,342.40.

The highs of bond yields have been beaten down by the lows of bond yields

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U.S. bonds yields declined slightly this week after rising earlier in the week. With the 10-year declining to 1.854% after hitting 1.9% earlier Wednesday. Wednesday. 30-year Treasury bond fell 2 basis points to 2.167%. Prices are inversely related to yields.

“It is hard to get too excited with the overnight declines in yields, the economic backdrop is still pointing to an increase in inflationary pressures and resilient growth, pointing to the need for the Fed as well as other central banks to shift towards a tighter policy setting, thus higher global rates over 2022 still look very likely,” Rodrigo Catril, senior FX strategist at National Australia Bank, wrote in a Thursday note.

Prices worries were high as U.K. data revealed an inflation rate of 2% soared to a 30-year high in DecemberWith higher energy costs and resurgent consumer demand driving up prices are the main factors.

Currencies, oil

Oil prices rose for a fourth dayAs much as a seven year high in one night, an outage on a pipelineWorries about Turkey and Iraq grew. Brent crude rose to $89.05, the highest price since Oct. 13th 2014. U.S. crude was at 1.8% and $86.96 per bar.

Oil prices traded higher on Thursday during Asia-time. U.S. crude climbed 0.36% to $87.27 and Brent a marginally higher to $88.50.

The following currencies are available: U.S. dollar indexThe, which measures the greenback’s performance against a basket consisting of its peers continued to fall. It traded at 95.538, down from earlier levels higher than 95.6.

The Japanese yenThe dollar traded at 114.49, a decrease from 114.5 levels earlier. The Australian dollarThe $0.7229 level was up from $0.721