Comment on Asian stocks climb after China rate cut

Asian stocks climb after China rate cut

Hong Kong (AFP) - Asian markets rallied Monday after China's surprise move last week to cut interest rates for the first time in more than two years as its leaders try to strengthen growth.The euro struggled following a sell-off Friday in response to comments from the head of the European Central Bank hinting at further stimulus measures to fight off deflation.Shanghai rose 1.85 percent, or 46.09 points, to end at 2,532.88 while in late trade Hong Kong was up 1.90 percent.Sydney added 1.08 percent, or 57.5 points, to 5,361.8 and Seoul ended 0.70 percent higher, tacking on 13.70 points to 1,978.54.Tokyo was closed for a public holiday.China's central bank on Friday evening announced it would slash its one-year rate for deposits by 25 basis points to 2.75 percent, and its one-year lending rate by 40 basis points to 5.6 percent, both effective Saturday.The move -- the first cut since July 2012 -- followed a series of disappointing data from the world's number two economy, a key driver of global growth.Last week banking giant HSBC said its index of manufacturing activity in China showed the sector had stagnated in November, while other data on trade and industrial output have also highlighted weakness."This provides confidence that growth won't fall below seven percent," said Shane Oliver, head of investment strategy and chief economist at AMP Capital Investors."Some of the rally this year has been a removal of cheap valuations.

 

Comment On This Story

Welcome to Wopular!

Welcome to Wopular

Wopular is an online newspaper rack, giving you a summary view of the top headlines from the top news sites.

Senh Duong (Founder)
Wopular, MWB, RottenTomatoes

Subscribe to Wopular's RSS Fan Wopular on Facebook Follow Wopular on Twitter Follow Wopular on Google Plus

MoviesWithButter : Our Sister Site

More Business News