- Business

China unexpectedly keeps lending benchmark unchanged, Asian stocks seesaw

Korean stocks soared by 7.44%, Hong Kong increased by 5.05%

The Asia-Pacific stock market increased sharply in the session on Friday morning when China was left unchanged the one-year loan prime rate and five-year LPR respectively at 4.05% and 4.75% the same as in February. The Japanese market is closed for holidays.

Movements of Asian markets at the close of session March 20

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10 a.m: Both Australia and South Korea stocks jumped over 4%

In Australia, S&P / ASX 200 increased by 4.25% thanks to the green of all areas in this index while the sub-financial index accounts for the largest proportion soared by over 6%.

After a sharp decline on Thursday, Korean stocks also saw a strong recovery in Friday morning session with Kospi increased by 4.63%, Hang Seng index of Hong Kong jumped by 3.5% at the beginning of the session.

In China, the benchmark Shanghai Composite Index closed up 0.71% while The Shenzhen Composite Index added by 0.51%.

After the announcement of the Central Bank of China (PBoC), the local Yuan rose compared to the greenback and traded at 7.0964 CNY / USD. Meanwhile, overseas Yuan also increased to 7,129 CNY / USD.

Overall, MSCI Asia except for Japan increased by 2.52%.

New developments related to the outbreak of the coronavirus worldwide are still being closely followed by investors, with the markets see the strong fluctuations in recent days when investors continue to evaluate potential impacts on the economy.

“Instability and volatility are becoming increasingly common in financial markets by the coronavirus crisis,” Kim Mundy, currency strategist at Commonwealth Bank of Australia, wrote in a note. “Central banks are continuing to apply all methods to limit impacts of the coronavirus,” he added.

Central banks around the world, from the Central Bank of Australia (RBA) to the US Federal Reserve (Fed), have lowered interest rates in recent days and authorities around the world are racing to cope with the economic impact of this pandemic.

Last night on Wall Street, the Dow Jones Industrial Average rose 188.27 points to 20,087.19 points while The S&P 500 was up 0.5% at 2,409.39 points. The Nasdaq Composite outperformed with a 2.3% surge to 7,150.58.

The dollar index, which a measure of the evolution of the greenback compared to other currencies in the currency basket, rose from 102.57 yesterday to 102.57.

The Yen traded at 111.75 JPY / USD after falling below 108 in the early this week. The Australian dollar (AUD) also climbed to $ 0.5803.

Movements of Asian markets at 10 am on March 20