Markets Brace for China Rate Decision as US Stocks Face Volatility

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ASIAN MARKET,CHINA ECONOMY,INTEREST RATES

Asia-Pacific markets are poised for a mixed start on Friday as investors await key economic data from China and Japan. The People's Bank of China is scheduled to announce its loan prime rate decision, with expectations that the central bank might lower rates to stimulate the Chinese economy. Meanwhile, US stock futures are set to rise, while the 10-year Treasury yield continues its upward trend, exceeding 4.5% and exerting pressure on stocks. Additionally, House Republicans have reportedly reached a short-term government funding agreement to avert a shutdown.

Asia-Pacific markets are set for a mixed open on Friday as investors look toward key economic events out of China and Japan.The People's Bank of China is due to release its loan prime rate decision on Friday, with traders watching if the central bank will cut rates in a bid to boost the Chinese economy. The one-year LPR influences corporate loans and most household loans in China, while the five-year LPR serves as a benchmark for mortgage rates.

US stock futures are set to rise, with the futures contract in Chicago at 39,085 and its counterpart in Osaka at 39,020 against the index's last close of 38,813.58.The 10-year Treasury yield also rose for a second day, topping 4.5% and pressuring stocks. The benchmark yield surged more than 13 points in the previous session. House Republicans say they’ve reached a deal to head off government shutdown Key House Republicans said on Thursday afternoon that they reached a short-term government funding deal to prevent a government shutdown that would have started on Friday evening. 'Our Country is far better off closing up for a period of time than it is agreeing to the things that the Democrats want to force upon us,' Trump wrote on Truth Social. The VIX, known as Wall Street's fear gauge, surged 74% to close at 27.62, up from around 15 earlier in the day. That surge is the second-greatest in history, behind a 115% leap to above the 37 handle back in February 2018 when there was a blow-up in funds tracking the volatility index. Wednesday's move comes after the central bank said it will likely lower interest rates just twice next year, down from the four cuts it projected back in September, alarming investors who wanted low rates to keep fueling the bull market. The Dow Jones Industrial Average tumbled by 1,100 points to its 10th straight loss.A person shops for eggs at a Whole Foods Market grocery store on December 17, 2024 in New York City. The U.S

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