Asian stocks mostly closed positive on Monday, May 8, following the recovery of US stocks. Investors were buoyed by news of better-than-expected performance by major banks in Australia, as well as a reduction in deposit interest rates by major banks in China to boost credit demand and consumer spending.
Tokyo’s Nikkei closed lower at 28,969.68, down 208.07 points or 0.71%, amid concerns about potential problems in the US financial system.
Meanwhile, Australia’s S&P/ASX 200 and All Ordinaries indices closed higher at 7,276.50, up 56.50 points or 0.78%, and 7,472.10, up 59.00 points or 0.80%, respectively, following the better-than-expected performance of Westpac, a major bank in Australia.
South Korea’s Composite Index (KOSPI) closed up at 2,513.21 points, up 12.27 points or 0.49%, as a result of a recovery in US stocks on Friday, May 5, after four consecutive days of decline. However, investors remain cautious about the possibility of further interest rate hikes by the US Federal Reserve (Fed) to curb inflation.
China’s Shanghai Composite closed up at 3,395.00 points, up 60.50 points or 1.81%, driven by buying of banking stocks after major banks announced a reduction in deposit interest rates.
Hong Kong’s Hang Seng closed up at 20,297.03 points, up 247.72 points or 1.24%, in line with the direction of the US stock market rebounding on Friday, May 5, in response to a rebound in banking stocks and better-than-expected US non-farm payroll numbers.
In Thailand, the SET closed up at 1,562.25 points, up 28.95 points or 1.89%.