Asian Stocks Edge Higher Amid Rate Cuts and Trade Uncertainty
Most Asian stocks rose marginally on Tuesday, with China in the lead after Beijing
cut a key lending rate as expected, while Australian shares maintained gains after the Reserve Bank cut interest rates and warned on the economy.
Regional
markets took middling cues from Wall Street, which ended flat on Monday following a downgrade to the U.S. sovereign credit rating by Moody’s.
But
S&P 500 Futures fell 0.2% in Asian trade, while gains in Chinese stocks were also limited after Beijing warned that U.S. controls on chip exports could
undermine a trade truce reached last week.
Focusis now on a U.S. House of Representatives vote on a Trump-backed tax bill, as
well as any more developments in U.S. trade talks.
Chinese stocks firm after loan prime rate cut; trade discourse in focus
China’s
Shanghai Shenzhen CSI 300 and Shanghai Composite indexes rose about 0.3% and0.2%, respectively, while Hong Kong’s Hang Seng index jumped 1%.
Gains
in Chinese markets came after the People’s Bank of China cut its benchmark loanprime rate as expected, bringing the rate further into record low territory.
The
cut signaled that Beijing was open to doling out more monetary stimulus to support the economy, although investors were still holding out for more fiscal
measures, especially those aimed at boosting consumption.
But gains in Chinese markets were limited by a warning from Beijing that the U.S.’
strict curbs on chip exports to China threatened to undermine progress in a trade deescalation between the two countries.
ASX
200 upbeat after RBA cuts rates and flags economic headwinds
Australia’sASX 200 index rose 0.5% and was close to a three-month high, after the Reserve
Bank of Australia cut interest rates by 25 basis points as expected.
The central bank remained uncommitted towards future easing, maintaining its
data-driven stance towards future easing.
But the RBA flagged increasing risks to the Australian economy from global trade
uncertainty, slightly trimming its 2025 gross domestic product forecast to2.1%.
The RBA also forecast slightly softer inflation for the year.
Broader
Asian stocks rose, with focus also on any more trade deals with the United states. Japan’s Nikkei 225 and TOPIX indexes added 0.5% and 0.3%, respectively,
after economy minister Ryosei Akazawa confirmed that Japan-U.S. trade talks took place on Monday.
Kyodo
reported that top-level U.S.-Japan talks are set to take place later this week.
SouthKorea’s KOSPI rose 0.2%, as did Singapore’s Straits Times index.
Gift
Nifty 50 Futures for India’s Nifty 50 index fell 0.1%, pointing to a weak open in extended profit-taking after strong gains last week. India was also seen
seeking an interim trade deal with the U.S. before a July deadline for Trump’sreciprocal tariffs.
cut a key lending rate as expected, while Australian shares maintained gains after the Reserve Bank cut interest rates and warned on the economy.
Regional
markets took middling cues from Wall Street, which ended flat on Monday following a downgrade to the U.S. sovereign credit rating by Moody’s.
But
S&P 500 Futures fell 0.2% in Asian trade, while gains in Chinese stocks were also limited after Beijing warned that U.S. controls on chip exports could
undermine a trade truce reached last week.
Focusis now on a U.S. House of Representatives vote on a Trump-backed tax bill, as
well as any more developments in U.S. trade talks.
Chinese stocks firm after loan prime rate cut; trade discourse in focus
China’s
Shanghai Shenzhen CSI 300 and Shanghai Composite indexes rose about 0.3% and0.2%, respectively, while Hong Kong’s Hang Seng index jumped 1%.
Gains
in Chinese markets came after the People’s Bank of China cut its benchmark loanprime rate as expected, bringing the rate further into record low territory.
The
cut signaled that Beijing was open to doling out more monetary stimulus to support the economy, although investors were still holding out for more fiscal
measures, especially those aimed at boosting consumption.
But gains in Chinese markets were limited by a warning from Beijing that the U.S.’
strict curbs on chip exports to China threatened to undermine progress in a trade deescalation between the two countries.
ASX
200 upbeat after RBA cuts rates and flags economic headwinds
Australia’sASX 200 index rose 0.5% and was close to a three-month high, after the Reserve
Bank of Australia cut interest rates by 25 basis points as expected.
The central bank remained uncommitted towards future easing, maintaining its
data-driven stance towards future easing.
But the RBA flagged increasing risks to the Australian economy from global trade
uncertainty, slightly trimming its 2025 gross domestic product forecast to2.1%.
The RBA also forecast slightly softer inflation for the year.
Broader
Asian stocks rose, with focus also on any more trade deals with the United states. Japan’s Nikkei 225 and TOPIX indexes added 0.5% and 0.3%, respectively,
after economy minister Ryosei Akazawa confirmed that Japan-U.S. trade talks took place on Monday.
Kyodo
reported that top-level U.S.-Japan talks are set to take place later this week.
SouthKorea’s KOSPI rose 0.2%, as did Singapore’s Straits Times index.
Gift
Nifty 50 Futures for India’s Nifty 50 index fell 0.1%, pointing to a weak open in extended profit-taking after strong gains last week. India was also seen
seeking an interim trade deal with the U.S. before a July deadline for Trump’sreciprocal tariffs.
