This week ended for Asian markets with a much-needed respite from the catastrophic losses they suffered for several days in a row.
On Friday morning, China fixed an annual loan rate of 4.05%, same as a month earlier. It also set the five-year rate at 4.75%, which also did not change compared to a month earlier.
With this step, China ignored investors’ expectations about interest rate cuts, which would be in line with the actions of central banks around the world. Global regulators have eased access to credit funds and offered economic stimulus packages to prevent the recession caused by the coronavirus pandemic.
The Chinese Shanghai Composite Index rose 1.15%, while Shenzhen Component closed with 1.13% gain. Hong Kong’s Hang Seng Index advanced markedly by 3.38%, offsetting previous decline shortly after markets opening. South Korea’s KOSPI Index surged 3.16%.
Japanese Nikkei 225 were closed on Friday due to a national holiday.
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