Asia markets mostly rise as China keeps loan prime rates unchanged

Asian markets showed mixed performance on Monday following gains in Wall Street on Friday, with investors closely monitoring China’s decision on key lending rates.

The CSI 300 in China opened flat after the country’s central bank opted to keep the loan prime rates (LPR) unchanged for the fourth consecutive month, aligning with expectations from a Reuters poll. This decision followed the recent 25 basis points rate cut by the U.S. Federal Reserve.

According to a statement released on Monday, the People’s Bank of China maintained the one-year LPR at 3.0% and the five-year LPR at 3.5%. The one-year rate impacts most new and existing loans, while the five-year rate influences mortgage pricing.

In Hong Kong, the Hang Seng Index dropped by 1%, and the Hang Seng Tech Index fell by 1.18%. On the other hand, Japan’s Nikkei 225 index rose by 1.28%, and the Topix index increased by 0.8%. Additionally, South Korea’s Kospi index gained 0.71%, while Australia’s ASX/S&P 200 went up by 0.49%.

In India, the Nifty 50 started the trading session with a 0.12% decline, and the Sensex index fell by 0.48%. Adani Power saw a significant surge of over 15% following a five-for-one stock split that took effect on Monday.

Looking at the U.S. market, futures remained steady in Asian trading after a strong performance last week. The Dow Jones Industrial Average and S&P 500 closed at new record highs, with investors anticipating further rate cuts by the Fed.

Friday saw the Dow Jones Industrial Average climbing 172.85 points to reach 46,315.27, while the S&P 500 and Nasdaq Composite also posted gains.

– This article includes contributions from CNBC’s Anniek Bao, Sarah Min, Pia Singh, and Alex Harring.