X

Asia close: Stocks stabilise after PBoC injects short-term liquidity

Stocks in the Asia Pacific region finished the week on a positive note after the People’s Bank of China added short-term liquidity in order to avoid a funding squeeze in the country’s banking system.
The PBoC added 90bn yuan ($14bn) of net funds through seven and 14-day reverse repurchase agreements – the most for a single day since February.

That decision was taken in response to concerns around the health of the country’s largest land developer, China Evergrande Group, including the risk of a default, as well as regards Chinese housing and credit markets more generally.

Another factor was demand for liquidity from lenders at quarter’s end.

The Shanghai Stock Exchange’s Composite Index rose 0.19% to 3,613.97, alongside a 0.58% rise for Japan’s Nikkei-225 to 30,500.05.

Nonetheless, interbank borrowing costs did not budge despite the PBoC’s latest actions.

Hong Kong’s Hang Seng meanwhile bounced back from the prior two session’s drubbing, rising 1.03% to 24,920.76.

New Zealand’s S&P NZX All Index also pushed higher, climbing 1.15% to 2,143.02.

Featured News

This Week’s Most Read

Wealth DFM