Asian stock exchanges closed mostly higher on Tuesday (7), after the Central Bank of China cut the bank reserve requirement rate to inject liquidity into the second largest economy on the planet.
Positive Chinese data also helped push concerns about the Asian country’s omicron and property market to the background.
On Monday, the People’s Bank of China (PBoC) announced that it will reduce the reserve requirement ratio (RRR) by 50 basis points from December 15, with a view to freeing up 1 .2 trillion yuan (about $188 billion).
Investors interpreted the decision as a sign that Beijing is willing to act to prevent the liquidity crisis in the real estate sector from spreading throughout economic activity.
In this scenario, the Shanghai stock exchange ended the session this Tuesday with a gain of 0.16%, to 3,595.09 points, but the Shenzhen, less comprehensive, lost 0.72%, to 2,477.49 points. The Taiex index in Taiwan, in turn, rose 0.61% to 17,796.92 points.
In Hong Kong, the Hang Seng advanced 2.72% to 23,983.66 points. Evergrande’s shares rose 0.55%, after the previous day’s fall, with an eye on the announcement of the formation of a Risk Management Committee to deal with the developer’s insolvency risk.
Also on the business radar, exports to China grew 22% in November compared to the same month in 2020, as reported today by the General Administration of Customs in the Asian country.
The result exceeded the expectations of analysts consulted by the The Wall Street Journal, which projected an advance of 16.1%. Imports rose 31.7% on the same comparative basis.
In Japan, the Nikkei rose 1.89%, to 28,455.60 points, on the Tokyo Stock Exchange. West Japan Railway (+4.97%) and airline ANA Holdings (+3.82%) were among the highlights, amid signs that the micron variant of the coronavirus causes mild cases of the disease.
In Seoul, South Korea, the Kospi index rose 0.62% to 2991.72 points, the fifth consecutive day of gains.
Samsung Electronics’s paper appreciated 1.44% after the tech giant reported the merger of the mobile phone and consumer electronics divisions.
In Oceania, the S&P/ASX 200, a reference in Sydney, advanced 0.95%, to 7313.90 points. The Central Bank of Australia (RBA) today announced the maintenance of the benchmark interest rate at 0.10%.
RBA also decided to continue weekly purchases of $4 billion in government bonds until at least mid-February 2022.
Reference: CNN Brasil
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