Asian stocks have joined in China's rate cut party

Photo by Kevin Frayer/Getty Images

Asian stocks, like US and European stocks before them, are pushing higher in early Monday trade following the decision from the People’s Bank of China (PBoC) to ease monetary policy on Friday evening.

The Nikkei 225 in Japan is the stand out performer, rising 1.34%. A weaker yen and speculation that the PBoC’s decision may see the Bank of Japan follow suit in easing monetary policy further later in the week is clearly buoying sentiment.

Elsewhere the ASX 200 in Australia and KOSPI in South Korea are higher by 0.37% and 0.31% respectively, a relative underperformance compared to the 1% gains seen on Friday evening. Given the easing announced by the PBoC was widely expected by the markets, perhaps it’s a case of “buy the rumour, sell the fact” taking place among investors.

Chinese markets – likely to be the centre of attention after the PBoC announcement – will kick off trade shortly after noon AEDT.

There will likely be interest in the USD/CNY fixing level from the PBoC just after 12.15pm AEDT, along with the performance of Chinese stocks when they resume trade at 12.30pm AEDT.

Here’s the regional scorecard as of 11.10am AEDT.

Stocks

  • ASX 200 5371.30 , 19.74 , 0.37%
  • Nikkei 225 19077.67 , 252.37 , 1.34%
  • KOSPI 2046.82 , 6.42 , 0.31%
  • S&P 500 Futures 2063.25 , -2.75 , -0.13%

Forex

  • USD/JPY 121.18 , -0.27 , -0.22%
  • USD/CNY 6.3488 , -0.0089 , -0.14%
  • AUD/USD 0.7219 , 0.0007 , 0.10%
  • NZD/USD 0.6748 , 0.0002 , 0.03%
  • AUD/JPY 87.48 , -0.17 , -0.19%
  • EUR/USD 1.1023 , 0.0009 , 0.08%
  • GBP/USD 1.5315 , 0.0002 , 0.01%
  • USD INDEX 97.031 , -0.0960 , -0.10%

Commodities

  • Gold $1,162.95 , -$0.91 , -0.08%
  • Silver $15.81 , $0.01 , 0.06%
  • WTI Futures $44.62 , $0.02 , 0.04%
  • Copper Futures ¥39,060 , -¥480 -1.21%
  • Iron Ore Futures ¥362.00 , ¥2.00 , 0.56%

10-Year Bond Yields

  • Australia 2.676%
  • New Zealand 3.330%
  • Japan 0.300%
  • Germany 0.516%
  • UK 1.867%
  • US 2.078%

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.