Mixed stocks RBA raises interest rates

Shares in the Asia-Pacific region traded mixed on Tuesday as the Reserve Bank of Australia raised interest rates once again.

Japan Nikkei 225 It recovered from previous losses to partially rise and Topix was near the flat line.

The Hang Seng Index In Hong Kong it gave up early gains to fall by 0.42%. Mainland China Shanghai boat Added 1.01% and Shenzhen Component It was 0.655% higher.

The Cosby In South Korea, it was little changed and the KOSDAQ index rose 0.68%.

in Australia , S & P / ASX 200 ticked a little higher.

The Reserve Bank of Australia raised interest rates by half a point to 2.35%, as expected by analysts polled by Reuters. The Australian dollar It was at $0.6808 after the move.

MSCI’s broadest index of Asia Pacific shares outside Japan was roughly flat.

On Monday, the People’s Bank of China announced that it would lower the foreign exchange reserve requirement ratio, or the amount of foreign currency reserves that financial institutions must hold, to improve financial institutions’ ability to use foreign exchange funds.

As of September 15, the reserve ratio will drop to 6% from 8%.

“This cut should help increase foreign exchange liquidity and thus reduce the depreciation pressure of the Chinese yuan. While the actual impact on foreign exchange liquidity is minimal… this cut is a strong policy signal that the PBoC is not comfortable with the rapid devaluation of the currency.” Analysts at Goldman Sachs Economics Research Books in a note late Monday.

On Tuesday, the People’s Bank of China set the midpoint of the yuan against the dollar at 6.9096, the weakest point since August 25, 2020, according to wind information.

US markets were closed overnight for a holiday.

in the oil markets, American crude Extended gains from the previous cycle, While Brent crude Fell slightly.

CNBC’s Evelyn Cheng contributed to the report.