Asian stocks close mixed, with losses in China after central bank keeps rates

Asian stocks closed without a single direction on Wednesday (20), with those of China registering losses of more than 1% after the local central bank left its most important interest rates unchanged.

Main Chinese stock index Shanghai Composite was down 1.35% to 3,151.05 points, while the less comprehensive Shenzhen Composite was down 1.71% to 1,985.65 points.

The bad mood came after the PBoC — as the Central Bank of China is known — decided to keep its benchmark interest rates for short-term and long-term loans unchanged, at 3.70% and 4.60%, respectively.

The Chinese central bank has been reluctant to relax its monetary policy more aggressively, despite clear signs that the world’s second-largest economy will slow down this second quarter after facing its worst Covid-19 wave in two years.

Late last week, the PBoC announced a cut in bank reserve requirements, but left interest rates on its medium-term credit line and reverse repurchase agreements untouched.

Elsewhere in Asia, the Hang Seng was down 0.40% in Hong Kong today at 20,944.67, and the South Korean Kospi was mostly flat in Seoul, down 0.01% at 2,718.69. spots.

Japan’s Nikkei rose 0.86% in Tokyo, at 27,217.85 points, boosted by auto stocks, and Taiex rose 0.91% in Taiwan, at 17,148.88 points.

The mixed behavior in the Asian region also came after a rally in New York stocks yesterday, led by technology stocks.

In Oceania, the Australian stock market was slightly in the blue on Wednesday, thanks to the good performance of shares in the health and tourism sectors. The S&P/ASX 200 gained 0.05% in Sydney at 7,569.20 points.

With information from Dow Jones Newswires