Asia-Pacific markets advanced on Monday as investors digested the People’s Bank of China’s decision to keep its loan prime rates unchanged and assessed the impact of the Bank of Japan’s first rate hike in three decades. Regional indexes posted broad gains, led by strong performances in Japan and South Korea.

The PBOC held its 1-year loan prime rate at 3% and the 5-year rate at 3.5% for the seventh consecutive meeting, aligning with market expectations. The move reflects Beijing’s cautious approach to monetary easing amid ongoing economic headwinds and currency stability concerns.

Regional Market Moves

• Japan’s Nikkei 225 surged 1.81% to 50,402.39, extending momentum after the BOJ raised its policy rate to 0.75% on Friday—the highest level since the 1990s.

• South Korea’s Kospi jumped 2.12% to 4,105.93, while the Kosdaq gained 1.52%.

• Hong Kong’s Hang Seng rose 0.55%, and mainland China’s CSI 300 advanced 0.95% to close at 4,611.62.

• Australia’s S&P/ASX 200 climbed 0.91% to finish at 8,699.9.

U.S. Futures Edge Higher in Holiday-Shortened Week

U.S. equity futures ticked up in early Asian trading, following a strong Friday session where tech and AI-related stocks rebounded. Oracle shares soared 6.6% after TikTok agreed to sell its U.S. operations to a joint venture including Oracle and Silver Lake. The Nasdaq Composite rose 1.31%, while the S&P 500 gained 0.88%.

The day’s moves highlight a diverging policy landscape across major economies: Japan is gradually normalizing rates after years of ultra-accommodation, while China maintains steady rates to support a fragile recovery. For regional markets, the balance between growth support and inflationary control will remain a key theme heading into 2026.