Most Asian stocks rose after traders revived bets on Friday that the Federal Reserve will lower interest rates this year
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Most Asian stocks rose after traders revived bets on Friday that the Federal Reserve will lower interest rates this year. Mainland Chinese stocks recouped earlier losses as investors shelved the central bank’s decision to hold a key rate.
The MSCI Asia Pacific stock index rose for a third session after a surprise drop in U.S. producer prices on Friday bolstered bets the Fed will reduce borrowing costs in coming months. Both the dollar and Treasury futures were little changed in Asia.
China’s CSI 300 index rose amid speculation that officials could lower the reserve requirement ratio in the coming months, after the People’s Bank of China unexpectedly left its one-year lending rate at 2.5% on Monday. . This is contrary to analysts’ expectations that it would lower the so-called medium-term lending facility by 10 basis points.
“Rate cuts are probably still on the cards, but China appears to be taking a more measured approach to monetary policy easing,” said Marvin Chen, a Bloomberg Intelligence analyst in Hong Kong.
Baidu shares fell more than 10% in Hong Kong following a report linking its Ernie AI platform to China’s military research into artificial intelligence. The decline dragged down other technology stocks listed in Hong Kong.
Stock prices rose in Taiwan after the Democratic Progressive Party won the presidential elections and the more China-friendly Kuomintang won too few seats to control the assembly. Japanese stocks rose after both the Topix index and the Nikkei 225 rose to 34-year highs last week amid inflows from overseas investors.
Oil rose as the risk that airstrikes by the United States and its allies against the Houthis would trigger a broader conflict and disrupt crude flows from the Middle East was balanced by weak fundamentals.
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2024-01-15 08:15:00
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