China’s Benchmark Lending Rate and its Impact on the stocks

On Wednesday, stocks across Asia were mixed as they reacted to the news connected with the world’s second-largest economy. China made the decision to keep the benchmark lending rate.

Importantly, mainland Chinese stocks fell on May 20. The Shanghai Composite fell 0.51% to end its trading day at around 2,883.74. At the same time, another index Shenzhen Composite dropped 0.94% to 10,948.48.

Also, the Hong Kong Hang Seng Index fell 01.% as of its final hour of trading.

In Japan, the Nikkei 225 added 0.70% to close at 20,595.15. In the meantime, the Topix index rose 0.58% to end its trading day at 1,494.69.

South Korea’s Kospi index gained 0.46% to close at 1,989.64.

Moreover, Australia’s S&P/ASX 200 advanced 0.24% to 5,573.

Stocks on May 20

As stated above stocks reacted to the news that came from China. The country’s central bank made the decision not to change the 1-year loan prime rate (LPR). It still stands at 3.85%. Moreover, the 5-year LPR stood pat at 4.65%.

Moreover, investors are closely monitoring the situation to learn more about the potential coronavirus vaccine. A biotechnology company from Massachusetts became the first company to release the data regarding the human vaccine trials. According to the company, all participants developed antibodies. This news helped to boost the stocks earlier in the week.

Also, oil prices were mixed in the afternoon of Asian trading hours. For example, international benchmark Brent crude futures rose slightly to $34.68 per barrel. Moreover, U.S. crude futures fell 0.28% to $31.87 per barrel.

Countries, especially with the biggest economies in the world, should try not to create additional problems for the global economy. Moreover, the U.S. and China should try to deescalate the situation as soon as possible. Hopefully, U.S. Japan, Germany, and other countries are ready to spend hundreds of billions of dollars to tackle the problems created by the coronavirus crisis.