China’s rate cut boosts Asian markets

<p>The People’s Bank of China lowered its benchmark interest rate by 25 basis points.</p>

Asian markets started the week on a positive note, boosted by an interest rate cut in China on Saturday (February 28th).

The People's Bank of China lowered its benchmark interest rate by 25 basis points to 5.35 per cent and reduced the benchmark saving rate by a similar margin to 2.5 per cent.

Meanwhile, HSBC's final reading of China's manufacturing sector in February came in at 50.7, beating expectations.

China's upbeat news offset Friday's announcement that economic growth in the United States slowed more than initially thought in the fourth quarter of 2014. GDP growth was revised down to 2.2 per cent from an earlier estimate of 2.6 per cent.

Japan’s Nikkei 225 index gained 0.2 per cent to 18826.88, and Hong Kong’s Hang Seng index rose 0.3 per cent to 24887.44. The Shanghai Composite rose one per cent to 3336.14.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.