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Chinese markets edge higher after PBoC cuts key rate

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Last Updated : Sep 23 2024 | 5:04 PM IST
Asian stocks ended mixed on Monday as tensions escalated in the Middle East and China's central bank lowered a short-term policy rate and pumped more liquidity into the financial system in a bid to boost the world's second-largest economy.

The dollar held steady in Asian trade while gold reached a new record high ahead of key U.S. economic data, speeches from Federal Reserve officials and central bank meetings in Australia, Sweden and Switzerland due this week.

Fed Governor Christopher Waller said on Friday that inflation is falling more quickly than expected, giving the U.S. central bank space to ease more in the coming months.

Oil extended last week's rally as the Israel-Hezbollah conflict appeared to escalate. Israel's military pounded targets in south and east Lebanon today and said more strikes were coming.

China's Shanghai Composite index rose 0.44 percent to 2,748.92 after a key rate decision from the country's central bank and ahead of a rare briefing on the economy Tuesday by three top financial regulators, with markets expecting fresh stimulus to resuscitate China's growth.

The People's Bank of China unexpectedly lowered its short-term policy rate by 10 basis points and pumped more liquidity into the financial system on Monday.

The central bank cut the 14-day reverse repurchase interest rate to 1.85 percent from 1.95 percent. The bank injected CNY 74.5 billion via the policy tool.

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First Published: Sep 23 2024 | 4:55 PM IST

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