Asian Stocks Gain As China Cuts Bank Rates To Aid Revival

China's CSI 300 rose as much as 1% before paring some of the gains to trade 0.85% higher after the central bank's rate cuts.

The equity futures in mainland China were also pointing to a positive start. (Source: Envato)

Stocks in Asia advanced in trade on Monday after a choppy start as China slashed key policy rates to beat disinflation and revive the economy. Stocks also took in positive cues from Wall Street after it closed with the best weekly gain this year as corporate earnings remained buoyant.

Australia's S&P ASX 200 was 65 points, or 0.79%, higher at 8,348, while the Japese Nikkei 225 was up 77 points, or 0.20% at 39,058 as of 9:55 a.m.

China's CSI 300 rose as much as 1% before paring some of the gains to trade 0.85% higher after the central bank's rate cuts.

The one-year loan prime rate was lowered to 3.10% from 3.35%, while the five-year LPR was reduced to 3.60% from 3.85%. The size of the cut is bigger than the 20 basis point reduction projected by all economists surveyed by Bloomberg.

This comes after China's GDP increased by 4.6% in the July to September period from a year prior. This is the slowest pace since March 2023 and is down from a 4.7% expansion in the second quarter. Further, its industrial production rose 5.4% from a year earlier, versus economists’ forecast of 4.6% growth.

Also Read: Stock Market Today: All You Need To Know Going Into Trade On Oct. 21

Stocks in the US closed last week with the best gain in 2024 amid strong corporate results and signs of optimism in economic growth. Stock benchmarks surged to record highs amid gains in most major groups with the S&P 500 notching its 47th record this year.

Tesla Inc. and Boeing Co.'s earnings will be closely watched this week as investors look for guidance after recent challenges in recent launches and production delays, respectively.

Oil remained steady as Israel vowed retaliation against Iran after it targeted the residence of Prime Minister Benjamin Netanyahu via a drone attack. This comes after Israel killed Hamas leader Yahya Sinwar.

Brent crude was trading 0.19% higher at $73.20 a barrel as of 6:00 a.m. IST. West Texas Intermediate was up 0.26% at $69.40.

Also Read: Diwali Muhurat Trading: BSE, NSE Announce Timing Of One-Hour Session On Nov. 1

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WRITTEN BY
Sai Aravindh
Sai Aravindh is a desk writer at NDTV Profit, where he covers business and ... more
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