Asian equity markets climbed on Tuesday after major central banks in China and Australia cut interest rates to support slowing growth. Investors also cheered the record-setting Hong Kong debut of Contemporary Amperex Technology Co., the world’s largest electric-vehicle battery maker.
China and Australia Cut Rates to Support Growth
The People’s Bank of China (PBoC) lowered its loan prime rates for the first time in seven months. It trimmed the one-year rate to 3.00% from 3.10% and the five-year rate to 3.50% from 3.60%. Policymakers signaled more cuts could follow as weak demand and trade tensions threaten deflation.
Meanwhile, the Reserve Bank of Australia (RBA) reduced its cash rate by 25 basis points to 3.85%. It was Australia’s second rate cut this year. The RBA said cooling domestic inflation and rising global trade risks gave it room to ease further if needed.
Record IPO Boosts Hong Kong Market
Contemporary Amperex Technology Co. raised about $4.6 billion in its initial public offering—this year’s largest globally. Its Hong Kong shares jumped about 13% on their first day of trading. On the Shenzhen Stock Exchange, the company’s shares edged up 0.1% after earlier declines.
Broader Asian Equity Gains
In early trading:
Hong Kong’s Hang Seng Index rose 0.9% to 23,542.46.
Shanghai Composite added 0.1%.
Tokyo’s Nikkei 225 climbed 0.5% to 37,685.09.
Australia’s S&P/ASX 200 gained 0.6% to 8,343.30.
South Korea’s Kospi was up 0.1% at 2,606.58.
Taiwan’s Weighted Index rose 0.4%.
U.S. Markets Steady After Moody’s Downgrade
On Monday, U.S. stocks and bonds saw limited movement following Moody’s downgrade of America’s credit rating from Aaa to Aa1. The S&P 500 rose 0.1% to 5,963.60, the Dow Jones added 0.3% to 42,792.07, and the Nasdaq Composite edged higher to 19,215.46.
Moody’s cited rising U.S. debt and political gridlock as reasons for its decision. Yields on the 10-year Treasury briefly topped 4.55% before settling near 4.45%, while the 30-year yield touched 5% before retreating.
Commodities and Currencies
In other trading:
U.S. crude oil eased 2 cents to $62.12 per barrel.
Brent crude fell 7 cents to $65.47.
The U.S. dollar slipped to 144.83 yen from 144.86.
The euro held at $1.1244.
Market participants will watch further policy moves and economic data in China, Australia, and the U.S. for clues on global growth and asset trends.
