Asian stocks traded positive on Wednesday as investors continued to watch central banks try to tame inflation in decades and tight lockdowns in China to control coronavirus cases.
The New Zealand central bank today raised its interest rate by 50 basis points, accelerating the withdrawal of stimulus measures launched during the pandemic period to meet the inflation rally.
This was the fourth consecutive rate hike by the Reserve Bank of New Zealand after the 25-point increase. at the October, November and February meetings. With the latest increase the interest rate went to 1.5% from 1% previously.
“By moving the interest rate to a more neutral position sooner, the risk of rising inflation expectations will be reduced,” the bank said. Consumer prices in New Zealand climbed to 5.9% in the October-December quarter from 4.9% in the previous quarter, while the central bank’s goal is to keep inflation between 1.0% and 3.0% in the medium term .
On the board, the Japanese Nikkei 225 index jumped 1.9% to 26,843.49 points.
In Hong Kong, the Hang Seng gained 0.7%, while in mainland China the Shanghai Composite moved with small gains of 0.1%.
The Chinese authorities’ decision to ease the lockdown in areas of Shanghai, a city of 25 million people and the financial center of China, gave a boost to the climate. Investors are also waiting for Beijing to announce new measures to stimulate the economy.
South Korea’s Kospi gained 1.8%, while in Australia the S & P / ASX 200 gained 0.3%. Indicators in Singapore, Taiwan and Indonesia are also strengthening.
Source: Capital
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