Asia-Pacific markets traded higher on Monday as investors assessed China’s decision to keep key lending rates unchanged, while drawing support from gains on Wall Street late last week.
The People’s Bank of China held its one-year and five-year loan prime rates steady at 3% and 3.5%, marking a seventh consecutive month without changes. The decision was widely expected and comes as policymakers balance weak economic data against concerns over financial stability.
Hong Kong equities advanced, with the Hang Seng index rising, while mainland China’s CSI 300 also posted gains. Market participants said the steady policy stance reduced near-term uncertainty, even as expectations remain for further stimulus if growth weakens.
Elsewhere in the region, Japan’s markets climbed after last week’s policy move by the Bank of Japan, which raised its benchmark interest rate to a three-decade high. The Nikkei 225 and Topix both moved higher as investors continued to adjust to Japan’s shift away from ultra-loose monetary policy.
South Korean stocks outperformed, with the Kospi posting strong gains, while Australia’s benchmark index also traded higher in early sessions.
Sentiment was further supported by a positive close on Wall Street on Friday, where technology stocks led gains. Shares of Oracle jumped after news related to a deal involving TikTok’s U.S. operations, helping lift the Nasdaq Composite and broader U.S. indices.
With central bank policy decisions largely priced in for now, investors are expected to turn their focus to upcoming economic data and corporate earnings for further direction.
