Lending markets

Chinese lending prime rate, Wall Street, currencies, oil

SINGAPORE — Stocks in the Asia-Pacific region surged on Wednesday after a strong rebound in U.S. stocks overnight.

The Nikkei 225 in Japan rose 1.54% in early trading and the Topix index gained 1.47%.

Japanese automaker Toyota said production in August will be around 700,000 units, lower than the previously announced figure of 850,000 units, due to a shortage of parts linked to Covid disruptions.

The South Korean Kospi rose 1.51% and the Kosdaq 1.44%.

In Australia, the S&P/ASX 200 rose 0.47%.

Reserve Bank of Australia Governor Philip Lowe said on Wednesday that inflation for the June quarter to be released next week will show further acceleration and that there must be a return to inflation of 2 % to 3%.

Prices rose 5.1% in the March quarter. In his speech, Lowe also said that the nominal neutral rate is at least 2.5%, while current rates are at 1.35%.

MSCI’s broadest index of Asia-Pacific stocks outside Japan rose 0.39%.

CNBC Pro Stock Picks and Investing Trends:

US stocks rallied on Tuesday in the United States after strong earnings reports.

The Dow Jones Industrial Average jumped 754.44 points, or 2.43%, to 31,827.05. The S&P 500 jumped 2.76% to 3,936.69 and the Nasdaq Composite rose 3.11% to 11,713.15.

China is expected to keep its key rate unchanged on Wednesday.


The The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 106.680, after falling sharply.

The Japanese yen was trading at 138.16 to the dollar, stronger than levels seen last week. The Australian dollar was at $0.6893, strengthening from the start of the week.

Bitcoin continued to gain ground, sitting above $23,000 at $23,411.53 as of 7:53 p.m. ET on Tuesday.

U.S. crude futures were flat at $104.22 a barrel, while Brent crude fell 0.43% to $106.89 a barrel. Both benchmarks were 1% higher in the previous session.