Asian markets rise as China holds interest rates and rare earth exports shift

Asian stock markets saw gains following the People's Bank of China's decision to maintain benchmark interest rates. This move prioritized financial system stability over aggressive growth support, providing a temporary boost to risk appetite despite ongoing concerns regarding China's economic slowdown.

In Japan, the Nikkei rose, supported by a weak yen and resilient trade demand. South Korea's Kospi also saw strong growth, driven by interest in the technology sector.

In the commodities sector, Chinese exports of yttrium oxide to the United States reached 29 metric tons in July, marking the second-highest volume since export controls were implemented. This increase provides relief to the U.S. aerospace industry, which relies on the material for critical engine components.

Conversely, China has maintained strict restrictions on exports of strategic materials like dysprosium oxide and terbium oxide to Japan. Beijing has cited national security concerns and Japan's perceived rearmament as justification for these limits, which have impacted Japanese defense-related companies such as Mitsubishi Heavy Industries.