Most Asian stocks rose on Tuesday, tracking an overnight rally on Wall Street as markets cheered the prospect of lower U.S. interest rates before a key address from Federal Reserve Chair Jerome Powell later this week. Chinese markets lagged amid unchanged rates from the People’s Bank. Read more here.
Japan’s Nikkei near 3-week high, Seven & i slips
Japanese stocks were the best performers in Asia, with the Nikkei index rising 1.8% and coming close to a three-week high. The index added 1.2%, boosted by strength in heavyweight technology stocks. Seven & i Holdings Co., Ltd. was an exception, falling over 6% after Monday’s rally. Broader Asian markets were mostly positive, with gains in South Korea and Australia.
China stocks lag as PBOC leaves rates unchanged
Chinese markets lagged their peers as the People’s Bank of China kept its benchmark loan prime rate unchanged. The Shanghai and Shenzhen indexes lost 0.6% and 0.8%, respectively, while Hong Kong’s Hang Seng index shed 0.3%. Persistent concerns over slowing growth in China continue to weigh on market sentiment.
Analysis:
The market optimism driven by expectations of lower U.S. interest rates has led to positive movements in most Asian stocks, with Japan leading the way. However, Chinese markets struggled as the central bank maintained rates, disappointing some traders. The upcoming address from Jerome Powell will provide further insights into the Fed's rate cut plans, influencing market movements moving forward. Investors should keep an eye on economic indicators and central bank decisions to navigate these volatile market conditions effectively.