Asia stocks rally, on US yield rebound and PBOC's policy reform
Following U.S. Treasury yields’ rebound from last week’s plunge,coupled with news of a key policy reform in China, Asia’s stocks inched higher Monday afternoon (Asia time).
The Shanghai composite climbed +1.47%, while the Shenzhen component gained +2.39%. The Shenzhen composite added +2.446%.
On Saturday, the People’s Bank of China announced a critical policy reform, as it intends to improve the process of forming the loan prime rate this month onward, in a way that’s apparently salutary to the economy. It said it will use “market-based reform methods” to reduce real lending rates – in a bid to spruce up economic growth in the nation. China’s economy has been plagued with slowing growth, with its ongoing trade war with the U.S. only worsening the situation apparently.
Hong Kong’s Hang Seng index also rose +1.87%, on the back of life insurer AIA’s stock climb of +2.57%.
In aggregate, the MSCI Asia ex-Japan index rose 1.02%.
Japan’s Nikkei 225 gained +0.66% as shares of convenience store operator FamilyMart surged +11.24%, while the Topix added +0.51%. South Korea’s Kospi advanced +0.72%.
Australia’s S&P/ASX 200 gained +0.74%.
Last Wednesday, concerns of recessionary forces in the U.S. surfaced as the yield on the 10-year Treasury note briefly dropped below the rate for the 2-year. The U.S. 30-year Treasury yield dropped to a record low and the yield on the benchmark 10-year notes fell to a three-year low last Thursday – a situation implying investors' rush to ‘safe haven’ U.S. fixed-income, while also heightening fears of yield curve inversion. Inversion has preceded an economic recession several times in the past.
But U.S. long-term Treasury yields got a boost last Friday, following reports that Germany would stimulate spending by issuing more debt. When a government increases its bond sales, the yields tend to go up to create demand for the additional supply of bonds. The yield on the benchmark 10-year Treasury note was at 1.5826%, while the rate on the 30-year Treasury bond was at 2.071%.
Momentum Indicator for MCHI turns positive, indicating new upward trend
MCHI saw its Momentum Indicator move above the 0 level on August 28, 2025. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 93 similar instances where the indicator turned positive. In of the 93 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for MCHI just turned positive on September 09, 2025. Looking at past instances where MCHI's MACD turned positive, the stock continued to rise in of 47 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where MCHI advanced for three days, in of 259 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 171 cases where MCHI Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The RSI Indicator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 5 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where MCHI declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
MCHI broke above its upper Bollinger Band on September 11, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
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