asian stocks
Beijing, Chin (BBN)- China markets are rallying after the mainland’s central bank unexpectedly cut a key lending rate on Wednesday.
The People’s Bank of China lower the required reserve ratio (RRR) for banks by 50 basis points in an attempt to stimulate the slowing economy,reports BBC.
The Shanghai Composite surged 2.4% and Hong Kong’s Hang Seng jumped 1.5%.
The rest of Asia is mostly down, however, after the European Central Bank moved to tighten Greece’s access to funding.
Japan’s Nikkei 225 fell 0.6% and the broader Topix lost 0.4% in early trade.
South Korea and Australian stocks are also in negative territory.
Analysts said the ECB is taking a hard-line stance and putting pressure on Greece to decide on a funding program.
“Overall, we retain the view that an agreement between the Greek government and the EU remains possible, but the probability of a Greek exit is clearly now higher than at any time in 2012,” Barclays Research wrote in a report.
“The rise of radical parties in Europe, such as Podemos in Spain, leaves not much room to EU policymakers to be lenient on Greece’s requests.”
Investors will also be watching for more earnings reports out of Japan this week.
One of the biggest stock movers on Thursday was Japanese technology giant Sony. Its shares surged by as much as 18% in Tokyo after the firm narrowed its full-year loss forecast.
BBN/SK/AD-5Feb15-10:10am (BST)