Asian Markets Open High on the last Monday of the year

Investing.com – Asian markets rose on Monday morning after a week in which Hong Kong´s closed on Friday at its highest levels from the past five months and the U.S. markets hit record highs during the week in Wall Street.

China’s lost 0.08% by 09:01 PM ET (02:01GMT), the Shenzhen Component was down 0.55%.

In a push for growth and in the midst of the trade war between the U.S. and China, for which the signing of a phase I deal between the countries is expected to happen in early January, the Chinese central bank announced during the weekend that the loan prime rate (LPR) will become a new benchmark for current floating-rate loans.

“The purpose of the step is to make interest rates more market-driven and help lower financing costs,” Wen Bin, an economist at Minsheng Bank in Beijing told Reuters.

According to the People´s Bank of China, from January 1, 2020 onwards, it will be prohibited for new floating-rate loan contracts to base their lending rates on the current benchmark, which has been unchanged since the third quarter of 2015 at 4.35%.

LPR´s prime rate for one-year loans stands at 4.15%, marking a difference with the current bank lending rate.

Hong Kong’s Index rose 0.38%.

Japan’s traded 0.54% lower after losing ground last Friday due to stocks that traded without the value of the next dividend payment (ex-dividend).

Down under, Australia’s slipped 0.41% during its last full day of trading in 2019, given the fact that it will close early on Tuesday, ahead of New Year´s Eve.

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