It was turbulent for the stocks across the Asia Pacific, as China decided to keep the benchmark lending rate. Interestingly, Australia’s S&P/ASX 200 added 0.24% to 5,573.
However, mainland Chinese stocks saw losses on the day. For example, the Shanghai Composite dropped 0.51% to end its trading day at around 2,883.74. Moreover, Shenzhen Composite fell 0.94% to 10,948.48.
Nevertheless, Japan’s Nikkei 225 gained 0.70% to close at 20,595.15. At the same time, the Topix index added 0.58% to end its trading day at 1,494.69.
Also, South Korea’s Kospi index added 0.46% to close at 1,989.64.
Benchmark lending rate and stocks
Recently, China made the decision not to change the 1-year loan prime rate (LPR). Also, the 5-year LPR stood pat at 4.65%. This move affected stocks.
It is no secret that investors are monitoring the situation and even minor news has the potential to affect the markets. Moreover, another important factor is connected with coronavirus pandemic. A biotechnology company Moderna, became the first company to release the data regarding the human vaccine trials.
Hopefully, all participants developed antibodies. This news had a positive impact on the stocks earlier in the week.
Importantly, countries should try not to create additional problems for the global economy. Hopefully, U.S. Japan, Germany, as well as other countries are willing to spend hundreds of billions of dollars.
The coronavirus pandemic created numerous problems for the economy. Moreover, the pandemic exposed a number of problems that existed even before the coronavirus pandemic. However, people paid less attention to such issues. Also, it will take time to address all problems. Private and governmental organizations should work together to make life easier for millions of people even in the most remote areas. Otherwise, it will be tough to support the global economy. As a reminder, investors are monitoring the situation and without confidence in the economy, it won’t be easy to help the companies.