China Market Gains Value As Key Rates Remain Steady

China Stock Market

Asia-Pacific markets mostly rose on Monday, with mainland China extending its 8-month highs, while investors awaited economic data from across the region this week.

China maintained its one- and five-year loan prime rates at 3.45% and 3.95%, respectively, following measures announced on Friday to boost its property market. The five-year LPR serves as the reference rate for housing mortgages.

Hong Kong’s Hang Seng index increased by 0.18% after the announcement, while the mainland Chinese CSI300 rose 0.35% to close at 3,690.96, marking its third consecutive day of gains.

Investors are anticipating trade, inflation, and business activity data from Japan later this week, while Singapore is set to release its April inflation data and final figures for its first-quarter gross domestic product.

China Stock Market

Japan’s Nikkei 225 climbed 0.73% to close at 39,069.68, its highest level in over a month and the first time the index has crossed the 39,000 mark since April 15.

The broad-based Topix gained 0.82% to finish at 2,768.04. Both indexes reduced gains from earlier in the session.

South Korea’s Kospi rose 0.64% to close at 2,742.14, while the small-cap Kosdaq fell 1.02% to its lowest level in nearly a month. The country’s central bank will announce its rate decision on Thursday.

Investors will also keep an eye on Taiwan as Lai Ching-te formally takes over as the island’s new president, with the Taiwan Weighted Index up marginally at 21,271.63.

China Stock Market

The Australian S&P/ASX 200 advanced 0.63% to finish at 7,863.7. On Friday in the U.S., the Dow Jones Industrial Average closed above the key 40,000 level for the first time.

The Dow first reached the 40,000 level during Thursday’s trading session, but achieved its first close over the threshold a day later, adding 134.21 points, or 0.3%, to end at 40,003.59.

The S&P 500 inched 0.1% higher on Friday, while the Nasdaq Composite slipped by less than 0.1%.

This market rally is expected to continue at least in the short term, according to Tom Lee, head of research at Fundstrat Global Advisors. Lee highlighted the Microsoft Build event from Tuesday to Thursday in the U.S., and Nvidia’s fiscal first-quarter results due on Wednesday, as potential catalysts.

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