Asia-Pacific markets trade higher as investors assess China’s key lending rate decision

Asia-Pacific markets climbed Monday as investors parsed China’s central bank’s decision to keep its loan prime rates steady.

The People’s Bank of China kept its 1-year and 5-year loan prime rates unchanged at 3% and 3.5% respectively, holding them for a seventh straight meeting, in line with a Reuters survey. The one-year rate influences most new and outstanding loans, while the five-year benchmark affects mortgages.

Hong Kong’s Hang Seng index rose 0.55%, while the mainland CSI 300 advanced 0.95% to close at 4,611.62.

Australia’s S&P/ASX 200 rose 0.91% to end the trading day at 8,699.9.

Japan’s Nikkei 225 rose 1.81% to 50,402.39 while the Topix was 0.64% higher at 3,405.17. The Bank of Japan raised its policy rate by 25 basis points to 0.75% —a three-decade high— last Friday.

South Korea’s Kospi jumped 2.12% to 4,105.93, and the small-cap Kosdaq rose 1.52% to 929.14.

U.S. futures ticked slightly higher Monday in early Asian hours, ahead of a holiday-shortened week.

Last Friday in the U.S., stocks rose for a second winning day, boosted by Oracle, as the artificial intelligence trade regained its footing after experiencing volatility.

Oracle shares were up 6.6% after TikTok agreed to sell its U.S. operations to a new joint venture that includes the software giant and private equity investor Silver Lake.

The Nasdaq Composite rose 1.31%, closing at 23,307.62. The S&P 500 added 0.88% to close at 6,834.50. The Dow Jones Industrial Average advanced 183.04 points, or 0.38%, and settled at 48,134.89.