MARKETS ASIA / China interest rate cut improves shopping mood | News

Author: Steffen Gosenheimer

TOKIO / HONG KONG (Dow Jones) – The interest rate cut in China, which surprised many market participants, created a buying mood on the East Asian stock exchanges on Friday. In Sydney (+ 1.5%), prices also increased significantly after a sharp decline from the previous day.

The Chinese central bank cut its five-year interest rate (LPR) by 15 basis points to 4.45%. and left it at 3.70 percent. for one year. The move is a continuation of a series of central bank measures to support a weakening Chinese economy, including cheap cash for banks, loan programs for some businesses, and lower mortgage rates for home owners. The fact that no reduction was made in the annual range could have been decided with a view to the yuan, which has recently depreciated greatly, it was said in trade.

As inflationary pressures are not so pronounced in China, monetary policymakers still have room for such economic support measures, while elsewhere interest rates are now rising, in some cases significantly.

The Shanghai composite index gained 1.6 percent, Hong Kong (late trade) made the largest gain (up 2.9 percent), and Seoul 1.8 percent. In Tokyo, the Nikkei index rose by 1.3 percent. up to 26 739 points.

Seiko Epson strong upwards

Seiko Epson jumped by almost 9 percent. The Japanese printer manufacturer announced a share buyback and a special dividend.

In Hong Kong, ZTE (+ 2%) was not concerned that mobile operators in Canada are now banned from using Huawei Technologies and ZTE equipment on their high-speed 5G networks as it is said to pose a threat to national security. Previously, such resolutions were adopted by the governments of Australia, New Zealand, Great Britain and the USA.

Commodities were in demand in Sydney amid interest rate cuts in China, an important customer country that supports the economy. BHP grew by 2.1 percent, Rio Tinto by 1.5 percent and Fortescue by 3.9 percent. Overall, Sydney is up 1 percent this week after four consecutive weeks of losses in the Market Barometer.

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Index (stock market) last +/-%% YTD end

S & P / ASX 200 (Sydney) 7 145.60 + 1.1% -4.0% 08:00

Nikkei-225 (Tokyo) 26,739.03 + 1.3% -8.3% 08:00

Kospi (Seoul) 2 639.29 + 1.8% -11.4% 08:00

Shanghai Comp. 3,146.57 + 1.6% -13.6% 09:00

Hang Seng (Hong Kong) 20 697.74 + 2.9% -11.8% 10:00

Taiex (Taiwan) 16 144.85 + 0.8% -11.4% 07:30

Straits-Times (Sing.) 3 227.00 + 1.1% + 3.2% 11:00

KLCI (Malaysia) 1,554.01 + 0.3% -1.2% 11:00

BSE (Bombay) 53,983.09 + 2.3% -7.3% 12:00

FOREX last + / -% 00:00 Thu 9:20% YTD

EUR / USD 1.0576 -0.1% 1.0583 1.0475 -7.0%

EUR / JPY 135.34 + 0.0% 135.28 134.45 + 3.4%

EUR / GBP 0.8474 -0.1% 0.8485 0.8480 + 0.9%

GBP / USD 1.2479 + 0.0% 1.2475 1.2352 -7.8%

USD / JPY 127.97 + 0.2% 127.75 128.38 + 11.2%

USD / KRW 1,264.93 + 0.1% 1,263.95 1,278.86 + 6.4%

USD / CNY 6.6713 -0.6% 6.7125 6.7637 + 5.0%

USD / CNH 6.6747 -0.8% 6.7275 6.7821 + 5.0%

USD / HKD 7.8472 -0.0% 7.8476 7.8486 + 0.7%

AUD / USD 0.7055 + 0.1% 0.7048 0.6972 -2.8%

NZD / USD 0.6407 + 0.4% 0.6384 0.6319 -6.2%

Bitcoin

BTC / USD 30 105.83 -0.4% 30 240.10 29 218.88 -34.9%

ROHOEL the last VT-Settl. +/-% +/- USD% YTD

WTI / Nymex 111.65 112.21 -0.5% -0.56 + 52.2%

Brent / ICE 111.89 112.04 -0.1% -0.15 + 46.5%

METALS last day before +/-% +/- USD% YTD

Gold (spot) 1,846.50 1,841.94 + 0.2% +4.62 + 0.9%

Silver (Spot) 22.03 21.92 + 0.5% +0.11 -5.5%

Platinum (Spot) 971.65 964.90 + 0.7% +6.75 + 0.1%

Future Miedź 4.30 4.29 + 0.4% +0.02 -3.5%

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Contact the author: maerkte.de@dowjones.com

DJG / DJN / gos / smh

(END) Dow Jones Newswires

May 20, 2022 03:36 ET (7:36 GMT)

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