Asian stocks opened the week on a mixed note as Chinese equities gained after the People’s Bank of China (PBoC) left its loan prime rate unchanged, while Australian markets retreated from recent highs. Muted trading volumes were observed due to a holiday in Japan, though futures hinted at potential upside for the Nikkei 225.
China Steady on Stimulus, Markets Rebound
Mainland Chinese indices showed resilience Monday:
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Shanghai Composite rose 0.5%
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CSI 300 gained 0.4%
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Hang Seng climbed 0.5%, reaching a 3-year high above 25,000
The PBoC’s decision to maintain its benchmark lending rate at record lows signals cautious optimism in policy continuity. Analysts believe Beijing may slow down aggressive stimulus measures following recent U.S.-China tariff rollbacks, but still expects monetary policy to stay expansionary amid ongoing growth challenges.
Japan Futures Rise Despite Political Shake-Up
Japanese equity markets were closed Monday for a holiday, but Nikkei 225 futures rose 0.2%, even as Prime Minister Shigeru Ishiba’s ruling coalition lost its upper house majority—a development that could complicate fiscal policy and reform plans in the near term.
Wall Street Caution Weighs, Australia Slips
Asian traders tracked flat cues from Wall Street on Friday ahead of a major earnings week. S&P 500 futures edged up 0.1% in Asian hours.
Meanwhile, Australian stocks pulled back from recent highs amid profit-taking, with investor focus shifting to the U.S. tariff deadline on August 1, which could reignite global trade tensions if no further deals are reached.
Global Market Watch
With the U.S.–China trade détente still fragile and central banks across Asia diverging in their policy paths, investors are advised to keep tabs on sector-level performance. Track shifts using the Sector Historical API, which provides daily and historical return data for key industries globally.
