{"id":71043,"date":"2024-07-22T16:56:12","date_gmt":"2024-07-22T06:56:12","guid":{"rendered":"https:\/\/www.icmarkets.com\/blog\/?p=71043"},"modified":"2025-11-10T21:40:04","modified_gmt":"2025-11-10T10:40:04","slug":"monday-22nd-july-2024-asia-markets-react-to-bidens-exit-and-china-rate-cuts","status":"publish","type":"post","link":"https:\/\/www.icmarkets.com\/blog\/monday-22nd-july-2024-asia-markets-react-to-bidens-exit-and-china-rate-cuts\/","title":{"rendered":"Monday 22nd July 2024: Asia Markets React to Biden&#8217;s Exit and China Rate Cuts"},"content":{"rendered":"\n<h3>Global Markets:<\/h3>\n\n\n\n<ul>\n<li>&nbsp;Asian Stock Markets : Nikkei down 1.28%, Shanghai Composite down 0.59%, Hang Seng up 1.25% ASX down 0.51%<\/li>\n\n\n\n<li>Commodities : Gold at $2406.5 (-0.27%), Silver at $29.21 (-0.44%), Brent Oil at $82.63 (0.37%), WTI Oil at $78.99 (0.21%)<\/li>\n\n\n\n<li>Rates : US 10-year yield at 4.211, UK 10-year yield at 4.1265, Germany 10-year yield at 2.448<\/li>\n<\/ul>\n\n\n\n<h3>News &amp; Data:<\/h3>\n\n\n\n<ul>\n<li>(CAD) Core Retail Sales m\/m&nbsp; -1.3% vs -0.5% expected<\/li>\n\n\n\n<li>(CAD) Retail Sales m\/m&nbsp; -0.8% vs -0.5% expected<\/li>\n<\/ul>\n\n\n\n<h3>Markets Update:<\/h3>\n\n\n\n<p>Asia-Pacific markets fell on Monday after U.S. President Joe Biden withdrew from the presidential race, endorsing Vice President Kamala Harris as the Democratic nominee. China\u2019s central bank cut the short-term 7-day reverse repurchase rate to 1.7% from 1.8% and trimmed the one-year and five-year loan prime rates by 10 basis points each, to 3.35% and 3.85%. This move, surprising economists, also included reducing collateral requirements for the medium-term lending facility, currently at 2.5%. A Reuters survey had shown that 64% of respondents expected no changes to the LPR rates, which are benchmarks for corporate loans and mortgages.<\/p>\n\n\n\n<p>Hong Kong\u2019s Hang Seng index rose 1.2% following the PBOC&#8217;s announcement, while the mainland Chinese CSI 300 fell 0.72%. The offshore Chinese yuan weakened by 0.16% to 7.2952 against the U.S. dollar. Investors are also assessing the impact of a global IT outage caused by a glitch in a CrowdStrike update, which led to Microsoft Windows operating system crashes and an 11% drop in CrowdStrike&#8217;s shares. Microsoft reported that around 8.5 million Windows devices were affected.<\/p>\n\n\n\n<p>This week, investors will focus on GDP data from South Korea and the U.S., and factory activity data from the region. Both countries will release second-quarter advance GDP figures on Thursday. Other key economic data include U.S. and Singapore inflation numbers on Friday and Tuesday, respectively. The Taiwan Weighted Index led regional losses, dropping 2.7%, followed by Japan\u2019s Nikkei 225 and Topix, which fell 1.21% and 1%. South Korea\u2019s Kospi declined by 1.44%, with the small-cap Kosdaq down 2.52%. Australia\u2019s S&amp;P\/ASX 200 dropped 0.66%.<\/p>\n\n\n\n<p>On Wall Street, all three major indexes retreated on Friday. The S&amp;P 500 fell 0.71%, the Nasdaq Composite slid 0.81%, and the Dow Jones Industrial Average decreased by 377.49 points, or 0.93%, to 40,287.53.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Global Markets: News &amp; Data: Markets Update: Asia-Pacific markets fell on [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":79815,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[196,215,339],"tags":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/posts\/71043"}],"collection":[{"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/comments?post=71043"}],"version-history":[{"count":2,"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/posts\/71043\/revisions"}],"predecessor-version":[{"id":71052,"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/posts\/71043\/revisions\/71052"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/media\/79815"}],"wp:attachment":[{"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/media?parent=71043"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/categories?post=71043"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/tags?post=71043"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}