By Sherisse Pham and Jill Disis, CNN Business

November 5, 2019

Hong Kong (CNN Business)China’s central bank on Tuesday trimmed a key interest rate for the first time since it was introduced three years ago, a move that could pave the way for more policy action as the country tries to protect its slowing economy.

Meanwhile, Asian markets broadly advanced as investors digested the latest news about US-China trade talks. Investors also shrugged off disappointing economic data out of China and Hong Kong.

Japan’s Nikkei (N225) rose nearly 1.8%, while South Korea’s Kospi (KOSPI) ended up 0.6%. China’s Shanghai Composite (SHCOMP) and Hong Kong’s Hang Seng (HSI) each edged up 0.5%.

China’s central bank cuts a key loan rate

The People’s Bank of China cut the one-year rate at which it lends to banks through its medium-term lending facility from 3.30% to 3.25%. It was the first cut to that rate since it was introduced three years ago, according to Julian Evans-Pritchard, senior China economist at Capital Economics.

Evans-Pritchard noted that the cut indicates that China is starting to take more direct steps to push down borrowing costs, and he suggested that the central bank could make even more rate cuts in the future. Read more…