Biden withdraws, China LPR | Wilnesh News

Asia-Pacific stocks fell on Monday on news that U.S. President Joe Biden had withdrawn from the presidential race and endorsed Vice President Kamala Harris as the Democratic nominee.

China’s central bank unexpectedly cut interest rates on Monday, short-term outlook The 7-day reverse repurchase rate was lowered from 1.8% to 1.7%.

this The one-year and five-year loan prime rates were also reduced by 10 basis points. Reaching 3.35% and 3.85% respectively surprised the market as economists did not expect any changes. The People’s Bank of China will also Reduced collateral requirements for medium-term loans from July. The current MLF interest rate is 2.5%.

A Reuters poll last week showed that 64% of respondents expected the one- and five-year LPR to remain unchanged.

The one-year LPR serves as the benchmark for most corporate loans, and the five-year LPR serves as the reference interest rate for mortgage loans.

Hong Kong’s Hang Seng Index up 1.2% After the central bank’s announcement, the CSI 300 Index down 0.92%. Offshore yuan weakens 0.08% trading at 7.2900 against the US dollar.

Investors will also be assessing the impact of a massive global IT outage later last week. Machines running Microsoft’s Windows operating system crashed on Friday as a glitchy update issued by a cybersecurity firm mass strikecausing its stock price to plummet 11%.

Microsoft say in one The blog post for the weekend is probably 8.5 million Windows devices (less than 1% of all Windows computers) affected.

This week, investors will be watching GDP data from South Korea and the United States, as well as data on factory activity in the region. South Korea and the United States will release second-quarter GDP data on Thursday.

Other economic data this week includes inflation data from the United States on Friday and Singapore on Tuesday.

this Taiwan Weighted Index Dragged down by industrial and technology stocks, Asian stock markets led the decline, falling 2.68% to close at 22,256.99 points.

Japan’s Nikkei 225 Index It fell 1.16% to close at 39,599 points, while the Composite Index also fell, closing at 2,827.53 points. This is the first time in three weeks that the Nikkei fell below the 40,000-point mark.

Korean Cospi It fell 1.14% to 2,763.51 points, while the small-cap Kosdaq index fell even more, falling 2.26% to close at 809.96 points.

Australian S&P/ASX 200 Index It fell 0.5% to close at 7,931.7 points.

On Wall Street, all three major indexes retreated on Friday as U.S. stocks ended the week as this year’s large-cap winners rotated into smaller stocks.

The S&P 500 fell 0.71% and the technology-heavy Nasdaq fell 0.81%. The Dow Jones Industrial Average fell 377.49 points, or 0.93%, to 40,287.53 points.

—CNBC’s Alex Harring and Jesse Pound contributed to this report.

Correction: This article has been updated to correct that the U.S. GDP release date has been brought forward.