Asia markets rise with China holding lending rates steady

December 22, 2025 (MLN): Asia markets moved higher on Monday with investors reviewing China’s decision to hold key lending rates steady and taking direction from strong gains on Wall Street.

In China the People’s Bank of China kept its one-year and five-year loan prime rates unchanged at 3% and 3.5%.

This was the seventh straight meeting without a rate adjustment and matched market expectations.

The move reflected a cautious policy approach aimed at supporting growth without increasing financial risks, according to CNBC. 

Hong Kong equities advanced with the Hang Seng Index rising 0.55%. Mainland stocks also moved up as the CSI 300 gained 0.55% showing steady sentiment across Chinese markets.

Australia’s S&P ASX 200 climbed 0.54% in early trade. Japanese equities outperformed as the Nikkei 225 jumped 1.58% while the broader Topix rose 0.86%.

The gains followed last week’s decision by the Bank of Japan to raise its policy rate by 25 basis points to 0.75%.

This marked the highest level in three decades and strengthened confidence in Japan’s economic outlook.

South Korean markets also posted solid gains. The benchmark Kospi surged 1.83% while the tech-focused Kosdaq rose 0.99%.

In the United States stocks ended higher on Friday for a second consecutive session driven by renewed interest in artificial intelligence-related shares.

Oracle led gains after TikTok agreed to sell its U.S. operations to a new joint venture involving Oracle and private equity firm Silver Lake. Oracle shares rose 6.6% following the declaration.

The Nasdaq Composite advanced 1.31% to close at 23,307.62. The S&P 500 gained 0.88% to finish at 6,834.50.

The Dow Jones Industrial Average added 183.04 points or 0.38% ending the session at 48,134.89.

With Asia markets starting the week on a positive note attention is likely to remain on central bank policy signals and global technology sector developments.

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