Asian Stock Markets Rise After China Cuts Key Lending Rate

Asian stock markets rallied on Friday, after China's central bank announced a rate cut, and as traders bargain-hunted following Thursday sell-offs. Hong Kong, Shanghai, and Tokyo all finished in the green, as did other regional exchanges.

In Japan, the Nikkei 225 opened evenly before gaining ground, finishing up 1.3%.

The benchmark Nikkei 225 rose 336.19 to 26,739.03, as gaining issues outnumbered losers 143 to 74.

The Nikkei 225 is off 7.1% year-to-date.

In economic news, Japan's headline consumer price index in April was up 2.5% year-over-year, while the "core" CPI, which excludes certain food items, was up 2.1% in the same period. The "core-core" index, which additionally excludes certain energy costs, was up 0.8% year-over-year.

The Hong Kong Hang Seng Index opened higher and rose throughout the session, finishing up 3% after China's central bank announced a rate cut for mortgage loans. Property and tech issues gained.

The broad gauge Hang Seng rose 596.56 to 20,717.24 as gaining issues outnumbered losers 64 to two. The Hang Seng TECH Index rose 4.8% on the day, while the Mainland Properties Index rose 0.7%.

The Hang Seng is off 11.4% year-to-date.

On the mainland, the Shanghai Composite closed up 1.6% to 3,146.57.

In economic news, The People's Bank of China cut the five-year loan prime rate, a peg for mortgage rates, to 4.45% from 4.6%.

On the other exchanges, the South Korean KOSPI rose 1.8%; the Taiwan TWSE advanced 0.8%; the Australian ASX 200 gained 1.2%; the Singapore Straits Times Index rose 1.6%, and the Thai Set was higher by 1.1%. In late trading in Mumbai, the Sensex was up 3%.