China loan prime rates and RBA minutes in focus

Melbourne city centre skyline alongside the Yarra River.

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Asia-Pacific markets climbed across the region on Tuesday, tracking Wall Street’s rally and as China released key economic data.

China’s loan prime rates were held at 3.35% for the one-year LPR and 3.85% for the five-year LPR, in line with expectations from a Reuters poll of economists.

The one-year LPR acts as the benchmark for most corporate loans, and the five-year LPR serves as a reference rate for mortgages.

Investors will also be assessing minutes from the Reserve Bank of Australia’s August meeting. At the meeting on Aug. 7, the bank kept its benchmark interest rate at 4.35%, but noted that “inflation remains above target and is proving persistent.”

Japan’s Nikkei 225 gained 1.60%, while the broad based Topix was up 0.95%.

South Korea’s Kospi was 0.77% higher, and the small-cap Kosdaq rose 0.92%.

The country’s consumer sentiment in August retreated from a two year high of 103.6, coming in at 100.8, with South Korean media outlet Yonhap reporting that this was “due to U.S. recession woes and the subsequent stock market rout.” A figure above 100 indicates that optimists outnumber pessimists.

Australia’s S&P/ASX 200 climbed 0.22% ahead of the RBA release.

Hong Kong’s Hang Seng index gained 0.1% on its open, while the mainland Chinese CSI300 was trading close to the flatline.

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