Surprise stimulus by Chinese central bank lifts Asian stocks

SYDNEY, Australia – Stocks in Asia Pacific mostly rose on Monday after a surprise move by China to trim a key interest rate.

The move by China’s central bank to reduce rates on 7-day reverse repurchase agreements by five basis points to 2.50% prompted lower yields on bonds, and a slightly higher yuan, as well as speculation that more stimulus may be on the way.

The Nikkei 225 closed 56.68 points or 0.24% higher on Monday, at 23,360.00.

Shares in Hong Kong and China were also higher in late afternoon trading.

The Australian All Ordinaries went against the trend, losing 27.20 points or 0.39%. The key index closed Monday at 6,871.70.

Currencies were volatile Monday as the U.S. dollar was sold off in the Asian zone against the majors. The euro jumped to 1.1061 by the Sydney close on Monday. The British pound strengthened to 1.2923. The Japanese yen was steady at 108.82, as was the Swiss franc at 0.9898.

The Canadian dollar rose only slightly to 1.3218.

The Australian and New Zealand dollars were a fraction lower at 0.6810 and 0.6399 respectively.

Published at Mon, 18 Nov 2019 06:19:41 +0000

Source: Surprise stimulus by Chinese central bank lifts Asian stocks.

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