Why Did Alibaba Stock Gain on Monday

Alibaba Group Holding Limited BABA and its peer stock traded upwards Monday as China kept the benchmark lending rate intact.
China reported a rate of 3.500 % p.a. on May 19, 2023, staying constant from the previous number of 3.500 % p.a. for May 18, 2023.
A weakening yuan and widening yield differentials with the U.S. restricted the scope for monetary easing, Reuters reports.
Cutting interest rates enables easier credit availability, making borrowing easier for businesses, stimulating investment, and expanding operations.
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Baidu, Inc BIDU, JD.Com, Inc J, and Bilibili Inc BILI stock also gained Monday.
Last week, Alibaba reported fourth-quarter FY22 revenue growth of 2% year-on-year to $30.32 billion, beating the consensus of $30.24 billion.
Non-GAAP earnings per ADS of $1.56 beat the consensus of $1.35.
The market had mixed expectations from the tech barometer following concerns over China's post-Covid recovery losing steam. However, upbeat results from Chinese tech companies helped alleviate some investor concerns.
Price Action: BABA shares closed higher by 2.52% at $86.10 on Monday.