China's cut of short term rate boosts STI

THE cut in short term funding rate by China's central bank was unexpected, but it boosted market sentiment and raised hopes of further stimulus measures by Beijing, making for a noticeably risk-on session.

Here, the Straits Times Index (STI) opened lower but overturned those losses before the midday break, en route to a 0.6 per cent or 19.8-point gain to close Monday at 3,258.66.

Elsewhere in the Asia-Pacific, China, Hong Kong, Japan, Malaysia and Taiwan all posted gains. Bucking the regional trend was Australia, which closed lower while South Korea barely moved.