Stock market today: Asia stocks follow Wall Street higher, while China keeps its key rate unchanged
ABC News
Asian markets have climbed after Wall Street drifted to a mixed finish as it closed out its 10th winning week of the last 11
HONG KONG -- Asian shares were mostly higher on Monday, with Tokyo extending its New Year rally, as China’s central bank kept its one-year policy loan interest rate unchanged.
U.S. futures and oil prices gained.
China’s central bank opted to keep its one-year policy loan interest rate at 2.5% on Monday while injecting funds into the financial system. That surprised market observers since it was contrary to the anticipated trend of lowering borrowing costs to stimulate the economy.
The “Policy focus has shifted to the effectiveness of monetary policy,” Zhaopeng Xing and Raymond Yeung of ANZ said in a report. “Today’s hold means the chance of an RRR (reserve ratio requirement) cut in February is higher.”
The Hang Seng in Hong Kong slipped 0.2% to 16,219.55, while the Shanghai Composite index was up 0.4%, at 2,892.28.
