Asia report: Most markets rise ahead of central bank decisions

8th Apr 2024 08:59

(Sharecast News) - Asia-Pacific markets showed a mixed performance on Monday as investors looked to central bank decisions, and awaited key inflation data from the US and China this week.

The Bank of Korea, the Reserve Bank of New Zealand and the Bank of Thailand were all holding monetary policy meetings in the coming days, while the central bank of the Philippines decided to hold rates on Monday.

"Most Asian stock markets are experiencing gains on Monday, in line with the generally positive signals from global markets last Friday," said TickMill market analyst Patrick Munnelly.

"This comes as traders respond to US data indicating a significantly stronger job growth in March than expected, signalling a healthy economy.

"The Japanese stock market is experiencing a significant increase, recovering from some of the losses from the previous session."

Munnelly noted the Nikkei benchmark crossed 39,500 handle during the session, influenced by positive trends in global markets on Friday.

"This has resulted in gains across various sectors, particularly driven by leading companies, exporters, and technology stocks."

Most markets rise on first day of the week

In Japan, the Nikkei 225 rose by 0.91% to reach 39,347.04, while the broader Topix index also saw a gain of 0.95% to settle at 2,728.32.

Tokyo Electric Power, Furukawa Electric, and Renesas Electronics were among the biggest gainers on Tokyo's benchmark, posting increases of 3.93%, 3.84%, and 3.6% respectively.

In contrast, Chinese markets experienced declines, with the Shanghai Composite dropping by 0.72% to 3,047.05 and the Shenzhen Component falling by 1.57% to 9,394.61.

Beijing Piesat Information Technology and Argus Shanghai Textile Chemicals faced significant losses in Shanghai, plummeting by 11.54% and 10.02% respectively.

Hong Kong's Hang Seng Index managed a modest gain of 0.05% to close at 16,732.85.

WuXi Biologics, China Hongqiao Group, and Li Auto were among the top performers, recording increases of 5.39%, 4.38%, and 4.05% respectively.

In South Korea, the Kospi index edged up by 0.13% to 2,717.65, with Celltrion and Posco Future M among the biggest gainers, with increases of 6.2% and 5.43% respectively.

Australia's S&P/ASX 200 index rose 0.2% to 7,789.10, with Life360 and Paladin Energy emerging as the top performers, surging by 16.8% and 6.69% respectively.

However, New Zealand's S&P/NZX 50 index experienced a slight decline of 0.32% to 11,973.59, with Pacific Edge and Skellerup Holdings registering notable losses of 4.65% and 2.6% respectively.

In currency markets, the dollar was last up 0.18% on the yen to trade at JPY 151.89, while the it was weaker on its antipodean counterparts, falling 0.08% against the Aussie to AUD 1.5189, retreating 0.08% from the Kiwi as well, changing hands at NZD 1.6618.

Oil prices declined, with Brent crude futures last down 0.66% on ICE to $90.57 per barrel, and the NYMEX quote for West Texas Intermediate falling 0.64% to $86.35.

China's central bank launches loan initiative, interest rates held in the Philippines

In economic news, the People's Bank of China unveiled a new initiative aimed at bolstering technological innovation and transformation among small and medium-sized tech enterprises over the weekend.

The programme, dubbed the 're-loan' scheme, would see CNY 500bn (£54.74bn) into the market.

Under the arrangement, funds lent by the central bank would be channelled through commercial banks, which would then extend loans to eligible customers.

In a statement on Sunday, the PBoC outlined that the loans, to be offered through 21 banks, would carry an interest rate of 1.75%.

Borrowers would have the option to extend the loans twice, with each extension lasting up to a year.

Meanwhile, the Philippine central bank opted to maintain its benchmark policy rate at 6.5% during its latest meeting on Monday.

The decision marked the fourth consecutive meeting where the rate remained unchanged.

In a press release, the Bangko Sentral ng Pilipinas highlighted that while the latest inflation trajectory had experienced a slight uptick, it remained within the target range.

The central bank revised its 2024 inflation forecast to 4% from the previous 3.9% projection announced at its last meeting.

Reporting by Josh White for Sharecast.com.