Investing.com– Most Asian stocks rose on Tuesday with Chinese markets leading gains on reports of more stimulus measures from Beijing, while Australian markets trimmed their losses after the Reserve Bank held rates steady.
Regional markets took some positive cues from mild overnight gains on Wall Street, with U.S. markets remaining in sight of record highs. But Wall Street futures retreated in Asian trade, suggesting that a recent rally may now be stalling.
Most Asian markets were sitting on strong gains from the past week, as investors cheered a bumper interest rate cut by the Federal Reserve. Focus this week is on more cues from the Fed and the U.S. economy.
Chinese stocks surge on stimulus
China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes rose more than 2% each, while Hong Kong’s Hang Seng index rose rallied over 3% and was the best performer in Asia.
Chinese officials unveiled a slew of planned measures to further spur economic growth, with the People’s Bank set to cut reserve requirements for banks by 50 basis points to unlock more liquidity.
For the ailing property market, the government said it would reduce mortgage rates for existing loans. Bloomberg reported that the government was planning at least 500 billion yuan ($70.8 billion) of liquidity support for local stocks.
Tuesday’s moves come after the PBOC had on Monday cut a short-term repo rate to further boost liquidity. The moves are aimed squarely at shoring up economic growth, as the Chinese economy struggles with persistent disinflation and an extended property market downturn.
