HONG KONG (APP) – Asian markets mostly rose Monday after China at the weekend cut interest rates for the second time since November, while better-than-forecast US economic data helped push the dollar up against the yen.
Several key events will also be taking investors’ attention this week, including a meeting of China’s Communist Party, the European Central Bank and the release of US jobs figures.
Hong Kong added 0.70 percent, Shanghai gained 0.68 percent, Tokyo climbed 0.26 percent by the break, Sydney put on 0.71 percent and Seoul was 0.33 percent higher.
The People’s Bank of China on Saturday cut interest rates by 25 basis points, citing “historically low inflation” among the factors behind its decision.
The move is the latest by authorities aimed at helping the economy regain its lustre after it grew in 2014 at its slowest pace since 1990. This month the PBoC also cut the percentage of funds banks must hold in reserve, known as the reserve requirement ratio, to try to boost lending.
It also comes just ahead of the start Thursday of the annual meeting of China’s rubber-stamp legislature, the National People’s Congress, at which Premier Li Keqiang is expected to deliver an address on the state of the economy.
Saturday’s announcement was followed the next day by official data showing the country’s manufacturing sector shrank for a second straight month in February.
Buying was also helped by news that the US economy grew 2.2 percent in the last quarter of 2014, slower than the 2.6 percent first estimated but not as slow as the 2.1 percent forecast.
The news lifted the dollar, which bought 119.82 yen in Tokyo Monday, against 119.63 yen in New York and well up from 119.17 yen in Tokyo earlier Friday.
The euro bought $1.1167 and 133.83 yen, compared with $1.1195 and 133.93 yen in US trade.
However, Wall Street’s main indexes still retreated. The S&P 500 slipped 0.30 percent Friday but still managed to record its best month since October 2011, putting on 5.5 percent. The Dow eased 0.45 percent and the Nasdaq fell 0.49 percent Oil retreated after enjoying steep gains Friday, with some analysts
