On Tuesday morning (20 May, 9:10 AM, GMT+7, Bangkok time), most indices in Asia Pacific increased as investors turned their attention to the upcoming policy rate announcement by the Reserve Bank of Australia and evaluated the People’s Bank of China’s rate cut decision.
China lowered its primary borrowing rates by 10 basis points, as the government intensified attempts to stimulate its economy amid looming trade disputes that could impede progress. The 1-year loan prime rate was reduced to 3.0% from 3.1%, and the 5-year LPR to 3.5% from 3.6%.
Meanwhile, Australia’s central bank is anticipated to announce its policy rate resolution later today, with the bank reiterating its commitment to maintaining inflation within the 2% to 3% target range as its primary objective. The Commonwealth Bank of Australia predicts a 25 basis points reduction in the cash rate to 3.85%.
Additionally, traders are also analyzing the performance of Contemporary Amperex Technology, the largest battery manufacturer globally, which surged over 11% during its Hong Kong trading premiere on Tuesday.
Japan’s NIKKEI surged by 0.56% to 37,708.19. South Korea’s KOSPI rose by 0.19% to 2,608.24, and Australia’s ASX 200 grew by 0.57% to 8,342.6.
As for stocks in China, Shanghai’s SSEC climbed by 0.12% to 3,371.76. Hong Kong’s HSI expanded by 0.92% to 23,546.59, while Shenzhen’s SZI slid by 0.09% to 10,161.49.
Meanwhile, the US stock markets edged up on Monday as the Dow Jones Industrial Average (DJIA) escalated by 0.32% to 42,792.07. NASDAQ increased by 0.02% to 19,215.46, and S&P 500 rose by 0.09% to 5,963.6. VIX jumped by 5.22% to 18.14.
As for commodities, oil prices settled higher on Monday, with tensions escalating between the U.S. and Iran regarding the nuclear program, partially countering the impact of Moody’s downgrade of the U.S. sovereign credit rating. Brent futures gained 13 cents or 0.19% to $65.54 a barrel, and the West Texas Intermediate (WTI) added 20 cents or 0.32% to $62.69 per barrel.
This morning, Brent futures grew 4 cents or 0.06% to $65.58 a barrel, and the WTI climbed 5 cents or 0.08% to $62.74 per barrel.
Meanwhile, gold futures dropped 0.24% to $3,225.9 per Troy ounce.
