STI rides tailwinds of PBOC rate reform

SINGAPORE equities tracked last Friday's Wall Street gains; and like its Asian counterparts, also rode tailwinds from the Chinese central bank's rate reform and positives from the US-China trade front. The Straits Times Index (STI) got the week off to a positive start, finishing at 3,128.45, up 13.42 points or 0.4 per cent.

Elsewhere in the Asia-Pacific, shares in Australia, China, Hong Kong, Japan and South Korea posted gains. Malaysia bucked the trend, closing lower. The Hang Seng posted its best session in two months, advancing 2.2 per cent or 557.62 points to 26,291.84.

Last Saturday, the People's Bank of China (PBOC) revealed changes to the way that the loan prime rate (LPR) will be set. Analysts are broadly of the view that the move - aimed at reducing borrowing costs for Chinese companies - supports the slowing economy. VM Markets managing partner Stephen Innes noted: "While not quite the policy bazooka the market so desperately needs, still with the PBOC opening the taps to a possible policy cut, it should provide a much-needed boost to regional sentiment and global commodity prices."