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Stock Market Update: Cautious Trading in Asia-Pacific Asian Stocks in the Red as Traders Tread Cautiously

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Asia-Pacific markets opened the week on a cautious note as traders braced themselves for the upcoming monetary policy decision by the Bank of Japan. In Japan, the stock market index (NKY:IND) was down by 0.64%, while the 10-year government bond yield fell below 0.70% ahead of the crucial central bank decision.

Similarly, in China, the benchmark index (SHCOMP) dropped by 0.40%. The People’s Bank of China injected short-term cash through 14-day reverse repos for the first time since late September, a move aimed at addressing the rising year-end liquidity demand.

Market participants were closely monitoring the central bank’s actions, especially after it pumped a record amount of cash into the economy on Friday and relaxed home-buying curbs in Beijing and Shanghai.

Looking ahead, investors awaited the December fixing of benchmark lending rates in China, following the central bank’s decision to maintain the 1-year loan prime rates at 3.45% for the third consecutive month in November.

Meanwhile, Hong Kong (HSI) witnessed a decline of 1.10%, while India (SENSEX) and Australia (AS51) were down by 0.11% and 0.22% respectively.

Across the Pacific, U.S. stock futures remained steady after the three major indexes closed a mixed bag on Friday amidst considerations of the latest economic data and its potential impact on the upcoming Federal Reserve meeting.

The Dow showed a marginal gain of +0.05%, the S&P 500 was up by +0.13%, and the Nasdaq recorded an increase of +0.04%.

Currencies: (JPY:USD), (CNY:USD), (AUD:USD), (INR:USD), (HKD:USD), (NZD:USD).

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