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%.
MCHI in -1.70% downward trend, declining for three consecutive days on October 22, 2025
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where MCHI declined for three days, in of 318 cases, the price declined further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Moving Average Convergence Divergence Histogram (MACD) for MCHI turned negative on October 07, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 47 similar instances when the indicator turned negative. In of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at .
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where MCHI's RSI Indicator exited the oversold zone, of 33 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 66 cases where MCHI's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on October 24, 2025. You may want to consider a long position or call options on MCHI as a result. In of 90 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
MCHI moved above its 50-day moving average on October 23, 2025 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where MCHI advanced for three days, in of 260 cases, the price rose further within the following month. The odds of a continued upward trend are .
MCHI may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 160 cases where MCHI Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
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