Melbourne city centre skyline alongside the Yarra River.
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Asia-Pacific markets were mostly up on Tuesday, tracking Wall Street’s rally and as China released key economic data.
China’s loan prime rates were held at 3.35% for the one-year LPR and 3.85% for the five-year LPR, in line with expectations from a Reuters poll of economists.
The one-year LPR acts as the benchmark for most corporate loans, and the five-year LPR serves as a reference rate for mortgages.
Minutes from the Reserve Bank of Australia’s August meeting were released on Tuesday. At the meeting, the bank kept its benchmark interest rate at 4.35%, but noted that inflation remained “above target” and was “proving persistent.”
The central bank said in its release that the board members had considered the case for raising the interest rate, but decided to leave it unchanged as the flow of data since the previous meeting “had not been sufficient to warrant a change in the stance of monetary policy. “
However, the RBA warned that it was “unlikely” that rates would be reduced in the short term, adding that “it was not possible to either rule in or rule out future changes in the cash rate target.”
Japan’s Nikkei 225 gained 1.8%, while the broad based Topix was up 1.2%.
South Korea’s Kospi was 0.87% higher, and the small-cap Kosdaq rose 1%.
The country’s consumer sentiment in August retreated from a two year high of 103.6, coming in at 100.8, with South Korean media outlet Yonhap reporting that this was “due to U.S. recession woes and the subsequent stock market rout.” A figure above 100 indicates that optimists outnumber pessimists.
Australia’s S&P/ASX 200 climbed 0.28% after the RBA release.
However, Hong Kong’s Hang Seng index was down 0.42%, while the mainland Chinese CSI300 was 0.42% lower.
Real estate firm Kaisa saw its shares jump by as much as 14% after the company announced a debt restructuring agreement, consisting of an issue of $5 billion in senior notes and 4.8 billion of mandatory convertible bonds.