Asian benchmark stocks remain stable after Chinese Central bank cut the interest rate to spur the largest economy in Asia. But market data suggested that consumer staples companies declined.
According to market data, MSCI Asia Pacific Index rose 0.1 percent to 146.32. The 4.2 percent increase in February is the largest advance since 2013.
It was also reported that Chinese money and debt rates fell slightly after the Central Banks decision to cut the interest rate. But market analysts said, it is a milder decline than expected. It was also suggested that, this shows the difficulty for Beijing to get the adjustment to benchmarks reflected in real lending rates.
According to the market data, the weighted average of the benchmark of seven-days-bond repurchase agreement was quoted at 4.7 percent by midday. It was down 12 percent from the previous closing. According to the market data the one-day rate dropped 9 basis points to 3.42 percent.
Market analysts said, China`s benchmark loan prime rate, which is an official figure calculated form contributions from China`s nine major commercial banks fell 21-basis-points on Monday from Friday. It was also mentioned that, the slide was still lesser than the Centrals banks decision to cut 25-basis-point in its official one year landing rate.
The national news agency reported that, the official interest rate was reduced by The Peoples Bank of China (PBOC) on Saturday. It was said the decision was taken to give a boost to the slow growth in the Chinese economy in recent months. Chinese Parliament is due on Sunday for their annual meeting.
According to data released by Chinese government on Sunday, Chinese manufacturing sector is going through a rough patch. According to their data the Purchasing Managers Index was 49.9 compared to 49.8 in January. According to HSBC Holdings Plc and Markit Economics China`s PMI rose to 50.7 from 49.7 in January.
According to the Asian Market data, Hong Kong’s Hang Seng Index added 0.3 percent, and the Shanghai Composite gained 0.8 percent. Japan’s Topix index added 0.1 percent. South Korea’s Kospi index advanced 0.6 percent. Singapore’s Straits Times Index gained less than 0.1 percent, and Taiwan’s Taiex Index lost 0.2 percent.
