Asia Stocks Mixed as China Keeps Key Rate on Hold: Markets Wrap

Shares in Asia were mixed after China’s central bank unexpectedly kept a key interest rate unchanged, and in the wake of Taiwan’s election on the weekend.

(Bloomberg) -- Shares in Asia were mixed after China’s central bank unexpectedly kept a key interest rate unchanged, and in the wake of Taiwan’s election on the weekend.

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Shares fell in Hong Kong as the People’s Bank of China maintained the rate on its one-year policy loans — called the medium-term lending facility — at 2.5%, contrary to widespread expectations among economists that it would cut it by 10 basis points. China’s 10-year bond yield advanced.

Japanese stocks rose after both the Topix and the Nikkei 225 indexes climbed to 34-year highs last week amid inflows from overseas investors. Stocks rose in Taiwan at the open after the Democratic Progressive Party won the presidential election and the more China-friendly Kuomintang gained too few seats to control the assembly.

“The market is likely to shift focus back to fundamental factors of a better semiconductor industry outlook and lower global yields, which is more likely to increase foreign flows and be supportive for TWD, in our view,” Citi analysts, including Adrienne Lui, wrote on Taiwanese assets in a note.

US stock futures declined during Asian trading after the S&P 500 closed little changed Friday. Prices paid to US producers extended their retreat in December, solidifying bets of a March Federal Reserve rate cut.

There is no cash trading of Treasuries due to a holiday in the US. The dollar gained against all of its Group-of-10 peers.

Some key events in markets this week:

Here are some of the main moves in markets:

Stocks

Currencies

Cryptocurrencies

Bonds

Commodities

This story was produced with the assistance of Bloomberg Automation.

--With assistance from Joanna Ossinger and Matthew Burgess.

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