Closing Bell 18th March: REITs lower as bond yields rise. ASX flat

Japan and China markets bounce

In Asia-Pacific financial markets on Monday, Japan’s Nikkei 225 Index led with a notable 2.2% increase, supported by the optimism around China’s economy, which began the year strongly, evidenced by better-than-expected retail sales and industrial production figures for the initial two months. The CSI 300 Index of China reflected this positive momentum, registering a 0.49% rise following the release of these statistics. Conversely, Hong Kong’s Hang Seng Index showed minimal movement, steadying after an initial dip. Looking ahead, attention turns to major central bank meetings: the U.S. Federal Reserve is anticipated to maintain interest rates at 5.25-5.5% according to a Reuters poll. Similarly, the Reserve Bank of Australia is expected to hold its rate at 4.35%. In a significant move, the Bank of Japan might end its negative interest rate policy, potentially setting its benchmark rate to 0%. Meanwhile, the Bank of England is predicted to keep its rates at 5.25%.