Asian stocks hit 2.5-year high amid Chinese stimulus measures

Asian stocks surged on Tuesday, reaching their highest levels in over two and a half years, fueled by a series of stimulus measures from China. Optimism surrounding potential U.S. rate cuts further bolstered market sentiment, putting pressure on the dollar.

In an eagerly awaited press conference, China's top financial regulators unveiled a slate of measures, saying it would cut bank reserves by 50 basis points while reducing mortgage rates to try to spur sluggish economic growth, News.Az reports, citing Reuters.

The moves sent Chinese stocks higher, with the blue-chip CSI300 Index opening 1% higher, while the broader Shanghai Composite index was also up 1% at the open.

Hong Kong's Hang Seng Index jumped over 2% in early trading, with the mainland properties index surging 5%.

That pushed MSCI's broadest index of Asia-Pacific shares outside Japan 0.41% higher to 588.43, levels last seen in April 2022.

The moves sent Chinese stocks higher, with the blue-chip CSI300 Index opening 1% higher, while the broader Shanghai Composite index was also up 1% at the open.

Hong Kong's Hang Seng Index jumped over 2% in early trading, with the mainland properties index surging 5%.

That pushed MSCI's broadest index of Asia-Pacific shares outside Japan 0.41% higher to 588.43, levels last seen in April 2022.

Japan's Nikkei was the biggest mover in early trading, soaring 1.4% to a near three-week high ahead of an eagerly awaited speech by Bank of Japan Governor Kazuo Ueda.

Overnight, U.S. stocks closed modestly higher as traders continued to digest the Fed's big move, with policymakers explaining the need for the 50 bp cut.

Markets are currently evenly split on whether the U.S. central bank will go for another 50 bp cut or a 25 bp cut in November, CME Fedwatch tool showed. They are pricing in 76 bps of easing this year.

News.Az