International News 23 December 2025
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China Keeps Loan Prime Rates Unchanged Amid Weak Economic Signals
China’s central bank kept its benchmark lending rates unchanged on Monday, maintaining a cautious policy stance despite ongoing economic softness and continued stress in the property sector. The People’s Bank of China (PBOC) held the one-year Loan Prime Rate (LPR) at 3.0% and the five-year LPR at 3.5%, in line with market expectations and marking the seventh consecutive month without a rate adjustment. The one-year LPR serves as a benchmark for most corporate and household loans, while the five-year rate is a key reference for mortgages. The decision comes amid disappointing November data, with retail sales rising just 1.3% year-on-year and industrial output up 4.8%, both below forecasts. The property sector remains a major drag, as fixed-asset investment fell 2.6% in the first 11 months of the year and home prices continued to decline, including in top-tier cities. While fiscal support is expected through the issuance of ultra-long special government bonds next year, deflationary pressures persist. A temporary trade truce with the U.S. may offer some relief by supporting exports. On Monday, the CSI 300 index rose 0.43%, while the onshore yuan held steady near 7.04 per dollar.
https://internasional.kontan.co.id/news/ekonomi-china-goyah-pboc-tahan-suku-bunga-acuan-ketujuh-kali
Gold Prices Hit Record High on Fed Rate-Cut Expectations
Global gold prices surged to a new all-time high on Monday, driven by expectations of further interest rate cuts by the U.S. Federal Reserve, sustained safe-haven demand, and a weaker U.S. dollar. Spot gold climbed to a record US$4,383.73 per troy ounce, extending its strong rally after the Fed delivered a 25-basis-point rate cut last week, reinforcing market confidence in a more accommodative monetary policy outlook. So far this year, gold prices have jumped around 67%, supported by heightened geopolitical and trade tensions, aggressive gold purchases by central banks, and expectations of lower interest rates ahead. The softer dollar has further boosted demand by making gold cheaper for overseas buyers. Markets are currently pricing in two additional Fed rate cuts in 2026, enhancing the appeal of non-yielding assets like gold, which continues to be a preferred hedge amid persistent global economic and geopolitical uncertainty.
https://docs.google.com/document/d/14AM86EysQyF_b4Lwum98YAT7D9dlaD-L94SNjhwjgvA/edit?tab=t.0
South Korean Stocks Jump on Chip Rally and Policy Support
South Korean equities surged more than 1% in early trading on Monday, led by strong gains in semiconductor stocks tracking a rally in U.S. peers. The benchmark KOSPI rose 1.66% to 4,087.18 as of 09:00 WIB, supported by optimism after Wall Street closed higher on Friday. Shares of Samsung Electronics climbed 3.15%, while SK Hynix jumped 5.12%, following a sharp rise in Micron Technology and gains in Nvidia amid improving outlooks for global chip demand. The electrical and electronics sector advanced 3.32%, making it the top-performing sector, while battery maker LG Energy Solution rose 1.85%. Market sentiment was further supported by domestic policy assurances, after South Korea’s Financial Services Commission said it is ready to take stabilizing measures if needed. Foreign investors were net buyers of 386 billion won in equities. The won traded at 1,477.6 per dollar, little changed from the previous close. In the bond market, three-year government bond yields fell 2.4 basis points to 3.002%, while the benchmark 10-year yield rose 2.6 basis points to 3.355%, reflecting mixed expectations across the yield curve.