TOKYO, JAPAN – JULY 27: Pedestrians and shoppers walk through the Akihabara area on July 27, 2023 in Tokyo, Japan. Japan’s core consumer price index climbed by 3.3% in June, outpacing the US figure for the first time in eight years as the Bank of Japan holds its monetary policy meeting on July 27 and 28. (Photo by Tomohiro Ohsumi/Getty Images)
Tomohiro Ohsumi | Getty Images News | Getty Images
Asia-Pacific markets traded higher Monday, tracking Wall Street’s gains on Friday stateside, as investors awaited China’s key lending rate decision that’s due out today.
China is expected to leave the loan prime rates unchanged, according to a Reuters poll. This came after the central bank kept a key interest rate steady after the U.S. Federal Reserve lowered its rates by 25 basis points.
Japan’s benchmark Nikkei 225 index rose 0.74% at the open, while the Topix index advanced 0.58%.
South Korea’s Kospi index added 0.71% in early trading, while the small-cap Kosdaq was 0.7% higher.
Australia’s ASX/S&P 200 increased 0.49%.
Hong Kong’s Hang Seng Index was set to open flat, with its futures contract last traded at 26,535, against the index’s previous close of 26,545.1.
U.S. equity futures were little changed in early Asian hours following a strong week for the major averages. The Dow Jones Industrial Average and S&P 500 closed at fresh all-time highs as the Fed’s rate cut set in investors’ minds.
Markets are now pricing in two more quarter-point cuts between now and the end of the year, according to the CME FedWatch Tool.
On Friday stateside, the Dow Jones Industrial Average added 172.85 points, or 0.37%, to close at 46,315.27, reaching a fresh record high. The S&P 500 settled up 0.49% at 6,664.36, while the Nasdaq Composite advanced 0.72% to finish at 22,631.48.
— CNBC’s Sarah Min, Pia Singh and Alex Harring contributed to this report.
