THE ASIA DAY: Shanghai Composite jumps 3% following PBOC rate cut

Photo: Brendon Thorne/Getty Images.

Asian markets, with the exception of Australia, have responded positively to China’s rate cut on Sunday.

Here’s the scoreboard.

Asian Equities

  • Nikkei 225 19,620.91, +1.25%
  • Shanghai Composite 4,333.58, +3.0%
  • Hang Seng 27,786, +0.76%
  • ASX 200 5625.20, -0.17%

Global Equity Futures

  • S&P 500 2,107.95, -0.03%
  • DAX 11,696.80, -0.03%
  • FTSE 100 7,006.50, -0.03%

Keeping with the theme seen following past rate cuts from the PBoC China’s Shanghai Composite surged higher today, closing up 3.00%. While it recorded the largest weekly decline seen since 2010 last week, 5.3%, Monday’s gain has seen the index recoup all of those losses in the space of just two sessions. Reflective of the price action on the mainland, Hong Kong’s Hang Seng is up 0.76% in late trade.

Elsewhere Japan’s Nikkei 225 jumped 1.25%, adding to a 0.45% gain on Friday, while Australia’s ASX 200, before the release of Tuesday’s federal budget, closed down 0.2%.

In currency markets the US Dollar was stronger across the board, particularly against the Euro, Swiss Franc and Australian Dollar.

Commodity markets, despite the stronger USD, were mixed with gold off 0.2% while Brent crude rose by a similar margin.

Bond yields, following a sharp move lower on Friday following the release of US non-farm payrolls, were largely lower.

Looking ahead Eurogroup finance ministers meet today in Brussels although no deal to unlock bailout funding for Greece is expected. Elsewhere the Bank of England announce their May monetary policy decision – no change to interest rates of asset purchases is expected – while economic releases include the US Federal Reserve’s labour market conditions index, Norway CPI along with Greek industrial production.

Forex
EUR/USD 1.1169, -0.29%
EUR/GBP 0.7242, -0.13%
EUR/CHF 1.0411, -0.04%
EUR/JPY 133.93, -0.17%
USD/JPY 119.92, 0.12%
USD/CHF 0.9321, 0.25%
GBP/USD 1.542, -0.23%
AUD/USD 0.7905, -0.32%

Commodities Futures
Gold $1,186.40, -0.21%
Brent Oil $66.33, 0.25%

10-Year Bond Futures
Japan 0.407%, -0.012%
U.S. 2.146%, -0.004%
Germany 0.536%, -0.008%
UK 1.873%, -0.006%
Australia 2.859%, 0.013%

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