Asia-Pacific markets showed mixed trading patterns on Monday, influenced by Friday’s gains on Wall Street and ongoing assessments of China’s lending rate decisions. China’s CSI 300 index opened flat after the People’s Bank of China (PBOC) opted to keep the Loan Prime Rates (LPR) unchanged for the fourth consecutive month, aligning with a Reuters poll. This decision follows a 25-basis-point rate cut by the U.S. Federal Reserve last week.
The PBOC announced that the one-year LPR would remain at 3.0% while the five-year LPR holds steady at 3.5%. These rates are crucial, as the one-year LPR mainly impacts new and existing loans, while the five-year LPR is significant for mortgage pricing.
In Hong Kong, the Hang Seng Index experienced a dip of 1%, with the Hang Seng Tech Index falling by 1.18%. Meanwhile, Japan’s benchmark Nikkei 225 index rose by 1.28% and the broader Topix index climbed 0.8%. Notably, the yield on the 10-year Japanese Government Bond reached 1.650%, marking the highest level since July 2007.
South Korea’s Kospi index increased by 0.71%, and the small-cap Kosdaq was up by 0.9%. Shares of Samsung Electronics surged more than 4% after reports emerged that Nvidia has approved the South Korean firm’s fifth-generation high-bandwidth memory product. This approval came after nearly 18 months of efforts, during which Samsung had to meet stringent performance metrics set by Nvidia.
Australia’s ASX/S&P 200 saw a modest rise of 0.49%. In India, however, the benchmark Nifty 50 started the trading day down by 0.12%, while the Sensex index fell by 0.48%. A standout performer was Adani Power, whose shares soared over 15% following a five-for-one stock split that became effective on Monday. This corporate decision is intended to enhance stock accessibility for investors, thereby increasing liquidity.
U.S. equity futures remained largely stable during the Asian trading hours following a robust week for major averages, with both the Dow Jones Industrial Average and the S&P 500 reaching record highs in response to the Federal Reserve’s recent rate cut. Market expectations now include two additional quarter-point cuts ahead of the year-end, as indicated by the CME FedWatch Tool.
On Friday, the Dow Jones added 172.85 points, or 0.37%, closing at 46,315.27, marking a new record high. The S&P 500 advanced 0.49% to finish at 6,664.36, while the Nasdaq Composite saw a 0.72% increase, closing at 22,631.48.
This backdrop points to a complex interplay between global economic policies and regional market responses, as investors navigate ongoing shifts and opportunities within the Asia-Pacific landscape. The delicate balance between interest rates and investor sentiment remains a focal point for market observers in the coming weeks.
Original Source: https://www.cnbc.com/2025/09/22/asia-pacific-markets-nikkei-225-hang-seng-china-loan-prime-rate-decision.html
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Publish Date: 2025-09-22 10:43:00
