Asia report: Markets mixed as China keeps interest rates on hold

Stock markets were mixed at the close in Asia on Monday, as China’s central bank left interest rates unchanged, while investors continued to monitor tensions between Russia and Ukraine.

In Japan, the Nikkei 225 was down 0.78% at 26,910.87, as the yen strengthened 0.15% against the dollar to last trade at JPY 114.84.

Technology conglomerate SoftBank Group was down 0.46%, while among the benchmark’s other major components, automation specialist Fanuc rose 0.3% and fashion firm Fast Retailing was ahead 0.11%.

The broader Topix index was 0.71% weaker by the end of trading in Tokyo, closing at 1,910.68.

On the mainland, the Shanghai Composite slipped 0.004%, or just 0.15 points, to 3,490.61, and the smaller, technology-heavy Shenzhen Composite was 0.61% firmer at 2,325.80.

The People’s Bank of China stood pat on its one-year loan prime rate in its latest decision on Monday, keeping it at 3.75%, as expected by market participants.

Its five-year loan prime rate was also held steady, at 4.6%.

“The most significant event for Asian and Pacific markets was China's decision to maintain its benchmark lending rate at its current level,” said AvaTrade chief market analyst Naeem Aslam.

“In this pursuit, Beijing maintained its one-year loan prime rate at 3.75%, as predicted by leading financial institutions in the region.

“Similarly, the country held its existing five-year loan prime rate at 4.6%.”

South Korea’s Kospi slipped 0.03% to 2,743.80, while the Hang Seng Index in Hong Kong was 0.65% lower at 24,170.07.

The blue-chip technology stocks were on the back foot in Seoul, with Samsung Electronics down 0.13% and SK Hynix losing 1.14%.

Oil prices were mixed at the end of the Asian day, with Brent crude last up 0.04% at $93.58 per barrel, while West Texas Intermediate lost 0.29% to $89.95.

In Australia, the S&P/ASX 200 gained 0.16% to 7,233.60, while across the Tasman Sea, New Zealand’s S&P/NZX 50 was ahead 0.12% to 12,156.34.

The down under dollars were both stronger on the greenback, with the Aussie last ahead 0.34% at AUD 1.3885, and the Kiwi advancing 0.33% to NZD 1.4884.