Asia equities are trading positive as the region takes its cue from the extended gains on Wall Street amid encouraging earnings results. The PBoC maintained its benchmark lending rate for corporate and household loans for the 18th month, in line with market expectations. It is worth noting that PBoC pointed out last week that it would focus on outright liquidity management rather than RRR and rate cuts as inflation continues to pressure the economy and global recovery seems to start slowing down amid supply and demand shocks.
Traders will be digesting recent China’s new home prices that slipped 0.08% M/M. The decline was the first one since 2015, adding to concerns about the condition of the local housing market. Elsewhere, China intervention is in focus after it took efforts in the coal market, sending China’s thermal coal futures tumbling as it vowed to get it back to a reasonable price by raising output. Inflation reports from Europe and the United Kingdom are on the radar amid growing inflationary pressures that could force Central Bankers to act on the interest rates level sooner than expected in the last quarter.
