Asian Markets Mixed; RBA Minutes, PBOC New Loan Prime Rates in Focus By

© Reuters. – Asian markets were mixed in morning trade on Tuesday. Minutes of the Reserve Bank of Australia (RBA)’s July meeting and the People’s Bank of China (PBOC)’s new loan prime rate were in focus.

The Shanghai Composite slipped 0.1% by 10:35 PM ET (02:35 GMT), while the climbed 0.6%. Hong Kong’s Hang Seng Index dropped 0.3%.

The PBOC today debuted its new loan prime rates under a new mechanism that was revealed on Saturday.

“The new fluctuating LPR replaces their existing fixed benchmark lending rate,” Kathy Lien, managing director of foreign exchange strategy at BK Asset Management, wrote in a Monday note cited by CNBC. “By allowing the rate to float, they are basically allowing interest rates to fall.”

“The lower the rate, the more positive the reaction in the market,” Lien said. “Aside from this rate cut, investors are also waiting for fiscal stimulus from China.”

Meanwhile, U.S. Commerce Secretary Wilbur Ross confirmed overnight that Washington will extend for another 90 days a license that allows China’s Huawei Technologies Co. to temporarily continue doing business with U.S. companies.

Ross said the next deadline will be around Nov. 19. However, He noted that the U.S. decided to place 46 more Huawei subsidiaries on its entity list.

Huawei said in a statement that the temporary relief “does not change the fact that Huawei has been treated unjustly. Today’s decision won’t have a substantial impact on Huawei’s business either way.”

Japan’s Nikkei 225 traded 0.4% higher. South Korea’s KOSPI also gained 0.4%.

Australia’s ASX 200 rose 0.7%.

The RBA’s July meeting minutes showed that the central bank would consider more easing if data showed “this was needed to support sustainable growth in the economy and the achievement of the inflation target over time.”

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