The central bank of the People’s Republic of China is responsible for formulating and implementing monetary policy, preventing and reducing financial risks and maintaining financial stability.
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Asia-Pacific markets are set for a mixed open on Monday as traders await China’s bond prime rate announcement, while also awaiting Japan’s general election later this week.
China’s central bank is expected to cut the one-year and five-year LPR by 20 basis points, according to ING notes and citing a statement made by People’s Bank of China Governor Pan Gongsheng on Friday.
ING also noted that the PBOC is likely to release a rate decision for its medium-term lending facility on Friday, although it is expected to remain unchanged at 2% after a 30 basis point cut last month.
“Data aside, it is worth monitoring if there is more potential from the ministry or the potential announcement of the time for the meeting of the National People’s Congress next week, as the stimulus rollout remains the main theme for the market,” ING said.
Other key economic data this week will include October inflation figures for the Japanese capital Tokyo, as well as third quarter GDP figures from South Korea.
benchmark Nikkei 225 has been set to rise, with the futures contract in Chicago at 39,185 and the pair in Osaka both at 39,040 against the last closing index of 38,981.75.
Futures for Hong Kong’s Hang Seng index stood at 20,782, indicating a weaker open compared to the HSI’s close of 20,804.11.
Australia’s S&P/ASX 200 started the day up 0.71%
In the US, both the S&P 500 and the Dow Jones Industrial Average hit record highs on Friday, sealing their sixth straight week of gains.
The broad market benchmark advanced 0.40% to close at 5,864.67, while the blue-chip Dow gained 36.86 points, or 0.09%, to 43,275.91.
The Nasdaq Composite, led by a post-earnings jump in Netflix, ended the day up 0.63% at 18,489.55.
— CNBC’s Lisa Kailai Han and Alex Harring contributed to this report.
