Asian stock markets experienced a mixed close, with exchanges linked to China retreating after Beijing’s central bank opted to maintain its interest rates. In contrast, other markets generally saw gains.
In Hong Kong, the Hang Seng Index began lower and continued to decline, ultimately closing down 2.2 percent after the People’s Bank of China decided to keep rates unchanged during a policy session, disappointing investors who were anticipating a more accommodative monetary policy. The comprehensive Hang Seng Index dropped 551.19 points to finish at 24,219.95, with the number of losing stocks surpassing gainers at 70 to 12. The Hang Seng TECH Index fell by 3.4 percent, while the Mainland Properties Index decreased by 3.1 percent.
CSPC Pharmaceutical emerged as a notable gainer, increasing by 2.6 percent, whereas Alibaba Health Information Technology saw a decline of 6.4 percent. On the mainland, the Shanghai Composite Index fell by 0.5 percent, closing at 3,408.95.
These downward trends followed the decision by Beijing to keep the nation’s five-year loan prime rate, which serves as a benchmark for mortgage rates, steady at 3.6 percent, alongside maintaining the one-year prime rate at 3.6 percent.
Other regional exchanges show mixed performance
In other regional exchanges, the South Korean KOSPI rose by 0.3 percent, the Taiwan TWSE increased by 1.9 percent, the Australian ASX 200 gained 1.2 percent, and the Singapore Straits Times Index climbed by 0.6 percent. However, the Thai Set experienced a decline of 0.7 percent. In late trading in Mumbai, the Sensex was up by 1.2 percent.
Bank Indonesia keeps policy rate steady
In related news, Bank Indonesia decided to keep its key policy rate unchanged, citing a strong economic outlook and moderate inflation, while also emphasizing the need to stabilize the national currency in foreign-exchange markets.
Sweden’s central bank maintains policy rate
Additionally, Sweden’s central bank held its policy rate steady at 2.25 percent as anticipated on Thursday, considering a fragile domestic economy against the backdrop of rising inflation and increasing global trade tensions. The Riksbank has reduced its key rate six times since spring of the previous year, with the last cut occurring in January, when it indicated that it had likely done enough to support a sluggish economy.
Swiss National Bank reduces key interest rate
Meanwhile, the Swiss National Bank (SNB) has further lowered its key interest rate by 25 basis points, bringing it to 0.25 percent. This marks the fifth consecutive interest rate reduction. In March, June, and September 2024, the SNB cut the key interest rate by 25 basis points each time, followed by a larger cut of 50 basis points last December.
