Asian stock markets rise after ‘big surprise’ from Chinese banks – E24

Asian stock markets rise after 'big surprise' from Chinese banks - E24

It’s only green in stock markets in the Asia-Pacific region on Friday morning. On the same day, China cut interest rates on five-year loans.

An electronic screen showing the stock’s development on the Nikkei 225 index.

The day after a sharp decline in the stock exchanges in the Asia-Pacific region, it rose on Friday.

This picture is about 07.00:

  • The Nikkei 225 index rose 1.18 percent
  • Hong Kong’s Hang Seng Index is up 1.83%
  • Kospi in Seoul rose 1.81%
  • The Shanghai Composite Index rose 1.11 percent
  • The FTSE Straits Times Index is up 1.28 percent
  • The ASX 200 index in Sydney rose 1.03 percent

The rise, among other things, comes after Chinese banks cut five-year loan rates by 15 basis points, which could help reduce borrowing costs and increase demand for loans, according to Bloomberg.

The Chinese reference rate, which is the interest rate on loans for one year, keeps Chinese banks at 3.7 percent.

“The decision comes as a huge surprise, and is undoubtedly a positive when it comes to boosting market sentiment,” Niu Chunbao, fund manager at Shanghai Wanji Asset Management, told Bloomberg.

Japan’s highest inflation rate in seven years

Japan’s core inflation rose 2.1% in April, the highest in seven years. Inflation was as expected.

Thus, core inflation, which includes energy and food prices, was above the central bank’s 2 percent target.

Growth was primarily driven by higher energy prices and a weaker yen, according to the Financial Times.

Excluding food and energy prices, inflation was 0.8 percent.

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The rise of electric car manufacturer Nio after its debut on the stock exchange

Chinese electric car maker Nio made its Singapore debut on Friday, the third stock exchange on which the stock is listed. The electric vehicle manufacturer is already listed in Hong Kong and New York.

The stock rose 20 percent at the opening. At 6 a.m., the increase is about three percent, according to CNBC.

Chinese electric car manufacturer Nio has a point of sale on the Karl Johans gate in Oslo.

“Neo’s biggest challenge is ensuring that supply chains are stable,” William Lee, CEO of Neo, told CNBC.

The Chinese electric car manufacturer had to charge customers more fees due to higher raw material prices. However, Li expects demand for electric cars to continue – despite the Chinese government’s cuts in subsidies and political support for the sector.

Nine companies delivered more than 5,000 vehicles, down from nearly 10,000 deliveries in March.

Big swings on Wall Street

After the sharp drop on Wednesday, the mood on Wall Street was tense throughout the trading day on Thursday. The three major indicators fluctuated between green and red numbers throughout the evening.

“We think volatility is going to be the investor’s story for the rest of the second quarter, and quite frankly, for the rest of 2022 as well,” Greg Psock, CEO of AXS Investments, told CNBC Thursday.

Dalila Awolowo

Dalila Awolowo

"Explorer. Unapologetic entrepreneur. Alcohol fanatic. Certified writer. Wannabe tv evangelist. Twitter fanatic. Student. Web scholar. Travel buff."

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