The People’s Bank of China trimmed the 1-year loan prime rate to 3.0% from 3.1%, and the 5-year LPR to 3.5% from 3.6%.
Australia’s central bank cut its policy rate to 3.85%, its lowest level since May 2023, as inflation concerns in the country continue to recede, giving room for the bank to ease monetary policy.
The Commonwealth Bank of Australia expects the RBA to cut the cash rate by 25 basis points to 3.85%.
S&P 500 futures rose less than 0.1%.
Nasdaq 100 futures were down 0.1%, while futures tied to the Dow Jones Industrial Average added 54 points, or 0.14%.
Amid trade tensions that threaten to impede growth, Asia-Pacific markets surged Tuesday as China lowered its key lending rates by 10 basis points in an effort to strengthen its economy.
The prime rate for one-year loans was reduced by the People’s Bank of China from 3point 1 percent to 3point 0 percent, and the prime rate for five-year loans was lowered from 3point 6 percent to 3point 5 percent.
While mainland China’s CSI 300 gained 0.48 percent, Hong Kong’s Hang Seng index increased 1.28 percent.
The Topix gained 0.32 percent, while Japan’s benchmark Nikkei 225 increased 0.45 percent. While the small-cap Kosdaq jumped 0.62%, South Korea’s Kospi increased 0.29%.
The benchmark SandP/ASX 200 in Australia also increased by 0 points, or 39%.
As worries about inflation in the nation continue to fade, Australia’s central bank lowered its policy rate to 3.85 percent, the lowest level since May 2023, allowing the bank to loosen monetary policy.
Inflation in Australia has been declining; the first quarter of 2025 saw headline inflation hit a four-year low of 2.4 percent.
The Reserve Bank of Australia has made it clear in its most recent monetary policy statement that maintaining inflation within its target range of 2 to 3 percent is still its top priority. The RBA is expected to lower the cash rate by 25 basis points to 3 point 85 percent, according to the Commonwealth Bank of Australia.
Returning inflation to its target of 2 to 3 percent “within a reasonable timeframe” is the RBA’s top priority, according to its most recent monetary policy statement.
Investors are also evaluating Contemporary Amperex Technology, the biggest battery manufacturer in the world, which saw an increase of more than 11% in its Hong Kong trading debut on Tuesday.
U. A. Futures on stocks barely moved. Futures on the S&P 500 increased by less than 0.1 percent. Futures linked to the Dow Jones Industrial Average increased 54 points, or 0.14%, while Nasdaq 100 futures fell 0.1 percent.
The three major averages closed higher overnight in the United States. Monday saw a slight increase in the S&P 500 as investors tried to ignore Moody’s downgrade of the US credit rating and Treasury yields dropped from their peak. It was the benchmark’s sixth straight winning session, closing at 5,963.60 after adding 0.09 percent.
At 19,215.46, the Nasdaq Composite ended the day up 0.02%. The Dow Jones Industrial Average ended the day at 42,792 points, up 137 point 33 points, or 0 point 32 percent. Following a recent period of hard selling, UnitedHealth saw an 8 percent jump, which helped the 30-stock index recover.
— This report was compiled by Alex Harring and Lisa Kailai Han of CNBC.
