IMF lowers growth forecast for Asia 2021 and China’s RPL
SINGAPORE – Asia-Pacific stocks rose on Wednesday morning after rising overnight on Wall Street as the S&P 500 posted its fifth straight day of gains.
Japan’s Nikkei 225 rose 0.72% early in the session while the Topix index rose 0.63%. South Korea’s Kospi rose 0.52%.
Australian stocks edged up, with the S & P / ASX 200 gaining 0.91%.
The MSCI’s largest Asia-Pacific stock index outside of Japan traded up 0.29%.
Investors will watch movements in the Chinese real estate space after Reuters reported on Tuesday that debt-ridden developer China Evergrande Group has put aside plans to sell a controlling stake in its real estate services business.
Looking ahead, China is expected to announce its latest benchmark policy rate at 9:30 a.m. HK / SIN on Wednesday. The majority of traders and analysts in a Reuters poll do not expect any change in both the one-year prime lending rate (LPR) and the five-year LPR.
The International Monetary Fund cut its 2021 economic growth forecast for Asia on Tuesday, now expecting the region to grow 6.5% this year. This compares to the IMF’s April forecast for a 7.6% expansion.
Overnight in the United States, the S&P 500 rose 0.74% to 4,519.63 while the Dow Jones Industrial Average gained 198.70 points to 35,457.31. The Nasdaq Composite rose 0.71% to 15,129.09.
The Japanese yen was trading at 114.52 to the dollar, lower than the levels below 114 seen against the greenback yesterday. The Australian dollar changed hands at $ 0.7475 after yesterday’s rise of less than $ 0.745.