Asian Stocks Rise, China Continues to Pursue Stimulus Via Investing.com

Investing.com– Most stocks in Asia were higher on Wednesday, with Chinese markets posting big gains after Beijing unveiled a slew of new stimulus measures aimed at supporting economic growth.

Regional markets took a positive lead from Wall Street, where strength in tech stocks pushed pace and level to record highs. US stock index futures were steady in Asian trade.

Stock market sentiment remained upbeat after an interest rate cut by the Federal Reserve last week, with investors now awaiting more cues from the central bank in the coming days.

Chinese stocks rose on stimulus

Chinese markets were by far the best performers on Wednesday, with indices and indices rising around 3% each. The Hong Kong index added 2.5%.

Markets rallied after the People’s Bank of China announced a slew of stimulus measures on Tuesday, including lower reserve requirements and lower mortgage rates.

Beijing was also seen considering a flash of liquidity support for local stocks.

The measures boosted hopes that Chinese economic growth would pick up after nearly three years of rampant disinflation and sluggish business activity.

Chinese stocks also benefited from the bargain buying, with the CSI 300 and Shanghai Composite indices falling to more than seven-month lows in early September.

But analysts said the measures would be insufficient to spark a Chinese economic recovery, with ANZ saying more fiscal measures were needed to support growth.

However, optimism towards China has spread across most regional markets with exposure to the country. South Korea rose 0.2%

Japan’s index rose 0.5 percent, while the broader index was flat after data showed producer inflation edged up slightly in August. The reading came just days ahead of a Tokyo Consumer Inflation due on Friday.

Futures for the India index indicated a subdued open as the index faced resistance to make fresh highs at 26,000 points.

Australian shares struggle amid mixed inflation, RBA says

Australia’s index traded sideways on Wednesday, taking little support from optimism over China, which is an important trading partner for Australia.

Local markets on Tuesday faced variety signals from the Reserve Bank of Australia. Governor Michele Bullock took a slightly less hawkish stance than some had expected, although the bank signaled no immediate changes to interest rates and is likely to keep them high for longer.

The RBA’s stance was driven mainly by sticky inflation, although Wednesday’s data showed inflation eased substantially in August. But core CPI inflation remained sticky and above the RBA’s target.