In This Article:
* MSCI Asia-Pacific index up 1%, Nikkei gains 0.7%
* Equities up amid hopes for German stimulus, China rate steps
* Safe-havens such as U.S. Treasuries, yen fall back
* Oil gains along with equities, OPEC still bearish in outlook
* Asian stock markets: https://tmsnrt.rs/2zpUAr4
By Shinichi Saoshiro
TOKYO, Aug 19 (Reuters) - Asian stocks tracked the Wall Street rally on Monday and found an extra tailwind from a move by China's central bank to change the way a key interest rate benchmark is set, seen by analysts as reducing borrowing costs for companies.
The People's Bank of China (PBOC) on Saturday unveiled key interest rate reforms to help steer borrowing costs lower for companies and support a slowing economy caught in the grip of a bruising trade war with the United States.
That move helped Chinese stocks lead regional gains on Monday amid a broadly more upbeat investor mood. Hopes major economies will seek to prop up slowing growth with fresh stimulus have helped ease some of the recessionary fears unleashed in markets last week.
"The decline in loan rates bodes well for China's credit demand and growth outlook in the second half of 2019 to offset the impact of the ongoing trade disputes," wrote Zhaopeng Xing and Raymond Yeung, economists at ANZ.
"However, the reform is unlikely to have a stimulative effect on China's property markets with the authorities still insisting on tight regulations to prevent the crowding-out effect from high home prices."
In China, the Shanghai Composite Index rose 1.5%. MSCI's broadest index of Asia-Pacific shares outside Japan gained 1%.
Over recent weeks, recession worries - triggered by an inversion in the U.S. bond yield curve - have led to a shakeout in financial markets. That has driven speculation of more support from policy makers, including from the U.S. Federal Reserve which last month cut rates for the first time since the financial crisis.
Australian stocks added 0.9%, South Korea's KOSPI advanced 0.7% and Japan's Nikkei rose 0.7%.
Wall Street shares had rebounded on Friday after a report that Germany's coalition government was prepared to set aside its balanced budget rule in order to take on new debt and launch stimulus steps to counter a possible recession.
The yen, a gauge of risk sentiment due to its perceived status as a safe haven, weakened for its third successive session.
The Japanese currency last traded at 106.375 per dollar, having pulled back from a seven-month peak near 105.000 reached a week ago when events including unrest in Hong Kong and a meltdown in Argentina's markets triggered a fresh bout of anxiety in markets already shaken by the U.S.-China trade war.