China’s stock market slump deepened on Friday, with the benchmark CSI 300 index falling 1.18% to a close of 3,775.16480, amid record-low bond yields and indications from the People’s Bank of China that it plans to cut interest rates “at an appropriate time” this year.
The country is also expanding its issuance of ultra-long bonds and ramping up efforts to boost consumption, senior officials from the National Development and Reform Commission said. The commission has also announced subsidies for smartphone and tablet purchases, as well as increased support for gig economy workers.
In other news, South Korea’s markets appeared to shrug off political uncertainty, with the Kospi index rising 1.79% to a close of 2,441.92. However, investors are still monitoring the situation closely, which has led to concerns about the country’s corruption watchdog failing to detain impeached President Yoon Suk Yeol.
The US markets also ended lower, with the Dow Jones Industrial Average losing 151.95 points, or 0.36%, and the S&P 500 dropping 0.22%. The Nasdaq Composite shed 0.16% to 19,280.79, marking the fifth straight session of losses for the tech-heavy index.
China’s bond yields hit record lows, with the 10-year yield dropping 1.5 basis points to 1.598%, and the 30-year government bond yield down 2.9 basis points at 1.819%. The People’s Bank of China has also set its 7-day reverse repo rate at 1.5%.
Overall, investors are taking a cautious approach as they assess Beijing’s policy signals and monitor global economic developments.
Source: https://www.cnbc.com/2025/01/03/asia-markets-live-updates.html