Asian markets began the week on a mixed tone Monday, as traders considered Chinese central bank interest rate cuts aimed at reviving the world’s second largest economy.<\/p>\n
Meanwhile, geopolitical fears drove gold to a record high.<\/p>\n
Another record day on Wall Street on Friday failed to spark a similar bounce at the start of the week, with traders also preparing for the latest firm earnings season.<\/p>\n
The People’s Bank of China said it had cut two key interest rates to all-time lows as part of a push by authorities to boost expenditure and meet its 5% annual economic growth objective.’<\/p>\n
The move follows data released last week that showed the economy expanded at its slowest quarterly rate since the beginning of 2023, but still better than expected.<\/p>\n
Zhang Zhiwei, president and chief economist at Pinpoint Asset Management, stated that “monetary policy has clearly shifted to a more supportive stance since the press conference on September 24.” “China’s real interest rate is too high.”<\/p>\n
Friday’s economic growth reading came amid news that retail sales and industrial output increased more than predicted in September, bringing some relief following a spate of disappointing data on a variety of measures like as inflation, investment, and trade.<\/p>\n
Since last month, Beijing has launched a slew of measures to resuscitate the economy, notably the real estate sector, including rate cuts, loosening of home-buying laws, and commitments to assist stock markets.<\/p>\n
The announcements sparked a massive spike in mainland and Hong Kong equities, but part of those gains have already been lost following a series of disappointing news conferences that failed to provide any clarity or meaningful actions.<\/p>\n
\u201cOfficials are gradually ramping up support to kick-start the economy \u2014 but the will-they-won\u2019t-they of announcements has made the process a rollercoaster for markets,\u201d said analysts at Moody\u2019s Analytics.<\/p>\n
\u201cThe latest supports are very welcome. And they\u2019re likely to propel the economy to its \u2018around 5%\u2019 target for the year. But more is required if officials are to address the structural challenges in the economy.\u201d<\/p>\n
Since last month, Beijing has launched a slew of measures to resuscitate the economy, notably the real estate sector, including rate cuts, loosening of home-buying laws, and commitments to assist stock markets.<\/p>\n
The announcements sparked a massive spike in mainland and Hong Kong equities, but part of those gains have already been lost following a series of disappointing news conferences that failed to provide any clarity or meaningful actions.<\/p>\n
Hong Kong fell more than 1% after rising more than 3% on Friday, but Shanghai edged higher.<\/p>\n
Tokyo, Singapore, Manila, Bangkok, and Mumbai all decreased, while Sydney, Seoul, Wellington, Taipei, and Jakarta rose.<\/p>\n
London opened higher, but Paris and Frankfurt were also lower.<\/p>\n
Wall Street had given investors a solid lead, with the Dow and S&P 500 setting new highs, aided by strong profits from Netflix and positive reports on Apple’s iPhone sales in China, which lifted the large tech sector.<\/p>\n
Safe-haven gold prices rose to an all-time high of $2,732.82 on rumors that Israel is planning retribution against Iran following Tehran’s missile bombardment this month, while word that a Hezbollah drone burst near Prime Minister Benjamin Netanyahu’s residence heightened tensions.<\/p>\n
However, oil prices remained unchanged after falling more than 8% last week due to economic uncertainties in China, the world’s largest importer of the commodity.<\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
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