Asian Stocks Mixed as PBOC Cuts Benchmark Lending Rate

By Gina Lee

Investing.com – Asian stocks were mixed on Monday as China cut its benchmark lending rate.

In its second cut to the loan prime rates this year, the People’s Bank of China slashed its  to 3.85% from 4.05%. It also cut the five-year loan prime rate to 4.65% from 4.75%.

China’s  was up 0.46% by 10:59 PM ET (3:59 AM GMT) while the  gained a modest 0.43% despite the news.

China Mobile Ltd (HK:) will report its earnings later in the day.

Japan’s  dropped 1.10% even as Prime Minister Shinzo Abe announced a JPY 117.1 trillion ($1.088 trillion) economic stimulus package.

The package was boosted from JPY 108.2 trillion by expanding cash payouts, and the package looks to be approved later in the day.

Down Under, the  fell 0.97% as the Reserve Bank of Australia releases its Monetary Policy Meeting Minutes on Tuesday.

Hong Kong’s  was up by 0.11% and South Korea’s  gained 0.20%.

Investors are taking a wait-and-see approach.

“The longer investors have to contemplate future economic issues while they wait for more countries to be on the downward slope of the pandemic curve, the more scope there is of risk assets pricing in a difficult future,” Chris Iggo, Core Investments CIO, told Bloomberg.