China's Rate Cut Fails To Lift Asian Market Sentiment

(RTTNews) - The People's Bank of China cutting its 5-year loan prime rate by 25 basis points, far more than by 15 basis points that the markets were expecting, failed to revive market sentiment in the Asian bourses. Nervousness about the Fed's monetary policy outlook as well as anxiety ahead of the release of the FOMC Minutes due on Wednesday limited gains.

China's Shanghai Composite Index added 0.42 percent to finish trading at 2,922.73. The day's trading ranged between 2,927.31 and 2,887.47. The Shenzhen Component Index edged up 0.04 percent to close at 8,905.96.

The Japanese benchmark Nikkei 225 slipped 0.28 percent to close at 38,363.61. The day's trading range was between 38,742.33 and 38,288.04.

Hitachi Zosen Corp gained 4.1 percent. Aozora Bank, Omron Cor, Fanuc Corp and Yaskawa Electric Corp, all gained more than 3 percent.

Mitsui Engineering and Shipbuilding slipped close to 7 percent. Rakuten followed with losses of 5.4 percent. Sapporo Holdings declined 4.6 percent. Yamaha Corp declined 3.2 percent whereas Tokio Marine Holdings declined 2.8 percent.

The Hang Seng Index of the Hong Kong Stock Exchange added 92 points or 0.57 percent from the previous close to finish trading at 16,247.51. The day's trading range was between a high of 16,274.56 and a low of 16,055.08.

Korean Stock Exchange's Kospi Index slipped 0.84 percent to close trading at 2,657.79. The day's trading range was between 2,643.93 and 2,673.84.

Australia's S&P/ASX200 closed trading at 7,659, shedding 6 points or 0.08 percent. The day's trading range was between 7,633.8 and 7,670.9.

ARB Corporation gained 10.2 percent whereas HMC Capital rallied 9.6 percent following results announcement. Reliance Worldwide Corporation and Pro Medicus, both added more than 8 percent. Suncorp Group recorded an increase of close to 6 percent after the Australian Competition Tribunal cleared ANZ Group's buyout of Suncorp's banking business.

Oil and gas producer Strike Energy tumbled almost 26 percent following an update on its South Erregulla gas well. The Star Entertainment Group plunged close to 20 percent following deferral of the results announcement. Chalice Mining slipped 10.5 percent, followed by SIMS that declined 9.7 percent and Sayona Mining that dropped 7.8 percent. The NZX 50 of the New Zealand Stock Exchange shed 82 points or 0.70 percent to close trading at 11,571.22, versus the previous close of 11,653.27. Trading ranged between 11,541.51 and 11,653.27.

Westpac Banking Corp rallied 5.3 percent, followed by healthcare business Pacific Edge that added 4.7 percent. Manawa Energy, Mercury NZ and Heartland Group Holdings, all added more than 1 percent.

KMD Brands slipped 11.3 percent. Ryman Healthcare declined 6.8 percent followed by Tourism Holdings and Oceania Healthcare, that both slipped more than 4 percent. A2 Milk Company also lost 2.8 percent in the day's trading.

Wall Street was closed on Monday for a holiday. It had closed on a negative note on Friday, amidst hotter-than-expected producer price inflation readings from the U.S. for January. Nasdaq Composite had slipped 0.82 percent to close at 15,775.65 whereas the Dow Jones Industrial Average had dropped 0.37 percent to finish trading at 38,627.99.