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Asian Market Stocks Witnessed Decline After Hong Kong Budget Announcement And New Zealand Central Bank Holds Rate Steady

On Wednesday, Asia Pacific stocks mostly declined as New Zealand’s central bank maintained its interest rate. In addition, Hong Kong also stopped regulations to tighten its property market during its budget presentation. 

The Reserve Bank of New Zealand kept its official cash rate at 5.5% while inflation remained well above its target range. This decision aligned with the predictions of 28 economists from Reuters with all but one forecasting the RBNZ would maintain its cash rate at its 15-year peak for the fourth consecutive meeting. The RNBZ announcement was broadly in tune with global concerns regarding prices, emphasizing the need to maintain restrictive policy measures in the meantime.

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Stocks in Hong Kong and Shanghai saw declines following the announcement of the Territory’s financial secretary Paul Chan on the budget for boosting tourism and the real estate sector. Hong Kong’s Hang Seng index also declined by 1.51% closing at 16,536.85 while the Shanghai Composite dropped by 1.9% closing at 2,957.85.

Country Garden, China’s biggest real estate developer announced that they are facing a liquidation petition for not settling a term loan facility amounting to 1.6 billion Hong Kong dollars (USD 204.5 million). The initial court hearing for the case will be on May 17.

In late January, China Evergrande known for being the most in-debt real estate developer, also failed to restructure $300 billion resulting in being ordered to undergo liquidation. 

Kospi, on the other hand, gained 1% closing at 2,652.29 after two days of consecutive declines, while Thailand’s SET was down by 0.6%. Japan’s Nikkei 225 went down by 0.8% closing at 39,208.03 while Topix went up down 0.1% closing at 2,674.95.

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Sophia Cruz
Financial Writer - Asian & European Desks
Sophia is an experienced writer, reporter and newsdesk member, mostly on the financial sectors. For the past 5 years Sophia has covered a wide variety of topics such as the financial markets, economics, technology, fin-tech and trading. Sophia has been a part of the FX Leaders team since 2017 and works on producing valuable content and information for traders of all levels of experience.
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