Asia markets mixed as China cuts 1-year loan prime rate, but leaves 5-year rate unchanged - Financespiders

• Financespiders
• 21 Aug, 2023

Asia-Pacific markets are mixed as China slashed its one-year loan prime rate, but kept its five-year rate unchanged on Monday.

The one-year LPR was cut by 10 basis points from 3.55% to 3.45%, while the five-year LPR remained at 4.2%. The five-year LPR also serves as a peg for mortgages.

Reuters reported that in a poll of 35 market watchers, all participants predicted cuts to both rates after China’s central bank unexpectedly lowered the medium-term lending facility rate last week.

Hong Kong’s Hang Seng index slipped 0.86%, while mainland Chinese markets were also in negative territory, with the CSI 300 down 0.28%.

In Australia, the S&P/ASX 200 slipped 0.1%, but other markets were all up. Japan’s Nikkei 225 climbed 0.32% and the Topix rose 0.24%. South Korea’s Kospi gained 0.61%, while the Kosdaq was up 1.87%.

On Friday in the U.S., the three major indexes ended mixed, with the Dow Jones Industrial Average up 0.07%. However, the S&P 500 was lower by 0.01%, and the Nasdaq Composite slipped 0.2%.

Both the S&P and Nasdaq recorded their third straight week of losses, which has not happened since February for the S&P, and December for the Nasdaq. Source.