Asia-Pacific markets live updates: RBA decision, China LPR

Asia-Pacific markets climbed Tuesday as China cut its key lending rates by 10 basis points in a move to boost its economy, at a time when trade tensions threaten to derail growth.

The People’s Bank of China trimmed the 1-year loan prime rate to 3.0% from 3.1%, and the 5-year LPR to 3.5% from 3.6%.

Hong Kong’s Hang Seng index rose 1.45%, while mainland China’s CSI 300 added 0.57% to close at 3,899.37.

Japan’s benchmark Nikkei 255 rose 0.08% to close at 37,529.49, while the Topix added 0.02% to close at 2,738.83. South Korea’s Kospi closed the day flat at 2,601.8 while the small-cap Kosdaq jumped 0.25% to close at 715.55.

Likewise, Australia’s benchmark S&P/ASX 200 rose 0.58% to close at 8,343.3.

Australia’s central bank cut its policy rate to 3.85%, its lowest level since May 2023, as inflation concerns in the country continue to recede, giving room for the bank to ease monetary policy.

Australia’s inflation has been on a downtrend, with the most recent headline inflation coming in at a four-year low of 2.4% in the first quarter of 2025.

The Reserve Bank of Australia has emphasized in its previous monetary policy statement that bringing inflation to its 2% to 3% target range sustainably remains its highest priority. The Commonwealth Bank of Australia expects the RBA to cut the cash rate by 25 basis points to 3.85%.

The RBA said in its previous monetary policy statement that returning inflation sustainably to its target of between 2% and 3% “within a reasonable timeframe” is its highest priority.

Investors are also assessing the world’s largest battery manufacturer Contemporary Amperex Technology which rose over 11% in its Hong Kong trading debut on Tuesday.

U.S. stock futures were little changed. S&P 500 futures rose less than 0.1%. Nasdaq 100 futures were down 0.1%, while futures tied to the Dow Jones Industrial Average added 54 points, or 0.14%.

Overnight stateside, the three major averages closed higher. The S&P 500 posted a slim gain on Monday as Treasury yields came off their highs and investors sought to look past Moody’s downgrade of the United States’ credit rating. The benchmark added 0.09% and closed at 5,963.60, marking its sixth consecutive winning session.

The Nasdaq Composite inched up 0.02% to end at 19,215.46. The Dow Jones Industrial Average rose 137.33 points, or 0.32%, and settled at 42,792.07. The 30-stock index was aided by a rebound in UnitedHealth, which saw an 8% jump after a recent bout of hard selling.

— CNBC’s Lisa Kailai Han and Alex Harring contributed to this report.