China Cuts Lending Rates Lifts Asia-Pacific Markets

China's central bank cut its key lending rates by 10 basis points, lowering the one-year loan prime rate to 3.0% and the five-year rate to 3.5%, aiming to stimulate economic growth amid trade tensions and global uncertainties. This rate reduction lifted Chinese stock indexes modestly, with the Shanghai Composite and Shenzhen Component gaining, while five major state-owned banks also lowered deposit rates to support the economy. The move contributed to broader gains across Asia-Pacific markets, including Japan's Nikkei, South Korea's Kospi, and Australia's ASX 200, as investors also awaited the Reserve Bank of Australia's policy rate decision, with expectations for a 25 basis point cut to address easing inflation. Investors showed strong interest in Contemporary Amperex Technology, the world's largest battery manufacturer, which surged over 11% in its Hong Kong trading debut. Meanwhile, U.S. markets edged higher despite Moody's recent downgrade of the U.S. sovereign credit rating, with Treasury yields stabilizing and investors cautiously navigating the uncertain economic climate. Overall, China's rate cut signals ongoing efforts to bolster economic activity, influencing regional markets and potentially encouraging other central banks to adopt similar supportive measures.