Asia-Pacific markets traded higher on Tuesday as investors digested China’s latest interest rate cuts, anticipated a key policy decision from the Reserve Bank of Australia (RBA), and eyed a major stock listing in Hong Kong.
By 11:30 am AEST (1:30 am GMT), Australia’s S&P/ASX 200 added 0.7%, South Korea’s Kospi 200 gained 0.1%, and Japan’s Nikkei 225 lifted 0.5%.
China’s central bank, the People’s Bank of China (PBOC), lowered its benchmark loan prime rates by 10 basis points in an effort to stimulate its slowing economy amid growing trade tensions.
The 1-year loan prime rate was cut to 3.0% from 3.1%, while the 5-year rate dropped to 3.5% from 3.6%.
Investors are now turning attention to the RBA’s upcoming interest rate decision. Markets widely expect a 25 basis-point cut as Australia continues to navigate softer inflation and moderate growth conditions.
Meanwhile, eyes are also on the anticipated listing of Contemporary Amperex Technology (CATL) on the Hong Kong stock exchange, which popped 11% at Tuesday's Hong Kong open in the world’s largest public offering of 2025.
In the United States, the Dow Jones Industrial Average rose 0.3% on Monday, the S&P 500 gained 0.1%, and the Nasdaq Composite ended flat.
In commodities, Brent crude edged up 0.2% to US$65.54 per barrel, while spot gold rose 0.8% to US$3,230.40 per ounce.
Chinese equity markets ended the session broadly weaker. The Shanghai Composite was unchanged at 3,367.6, and the CSI 300 fell 0.3% to 3,877.1. Hong Kong’s Hang Seng Index declined 0.1% to 23,332.7. In India, the BSE Sensex dropped 0.3% to 82,059.4.
European equities traded higher. The FTSE 100 in London gained 0.2% to 8,699.3, Germany’s DAX rose 0.7% to 23,935.0, while France’s CAC 40 closed flat at 7,883.6.
