Asia report: Markets finish higher as China seeks looser lending
Markets in Asia ended mostly higher on Tuesday, after China’s banking regulator put pressure on the country’s financial institutions to up their domestic lending.
AUD/USD
$0.6525
03:00 26/04/24
GBP/NZD
NZD2.0969
02:59 26/04/24
Hang Seng
17,284.54
10:21 25/04/24
Nikkei 225
37,587.42
09:43 25/04/24
USD/JPY
¥155.6380
03:00 26/04/24
In Japan, the Nikkei 225 was up 0.09% at 22,219.73, as the yen weakened 0.31% against the dollar to last trade at JPY 110.41.
On the mainland, the Shanghai Composite surged 1.31% to 2,733.83, and the smaller, technology-heavy Shenzhen Composite was boosted 1.39% to 1,471.27.
China’s Banking and Insurance Regulatory Commission released a statement during the day, urging financial institutions to increase the portion of their lending given to medium and long-term loans.
It was reportedly a bid to ensure borrowers weren’t coming under undue stress at month and quarter ends.
“Chinese equities rebounded after the banking regulator (called) for banks to boost lending in order to support infrastructure projects and exporters,” noted Mizuho Bank economist Huani Zhu.
South Korea’s Kospi was 0.99% higher at 2,270.06, while the Hang Seng Index in Hong Kong was ahead 0.56% at 27,752.79.
The blue chip technology stocks had a bumper day in Seoul, with LG Electronics up 1.66%, Samsung Electronics rising 2.17%, and SK Hynix ahead 4.95%.
Oil prices were higher, with Brent crude last up 0.95% at $72.90 per barrel, and West Texas Intermediate adding 1.54% to $66.44.
In Australia, the S&P/ASX 200 slid 0.96% to 6,284.40, with the hefty financials subindex being joined by the energy and materials sectors at the wrong end of the benchmark.
It came after the Reserve Bank of Australia released the minutes of its August policy meeting, which revealed it saw “no strong case” to change monetary policy at this stage, given the slow progress being made on inflation and employment in the country.
The central bank stood pat on the official cash rate earlier in the month, at 1.5%.
Across the Tasman Sea, New Zealand’s S&P/NZX 50 rose to another fresh record, adding 0.07% to 9,115.78, led higher by electricity infrastructure operator Vector, which was ahead 2.7%.
Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.18% at AUD 1.3602, and the Kiwi advancing 0.4% to NZD 1.4992.