Asian shares rally as China introduces largest stimulus since pandemic
Bernama
24/09/2024
Asian stocks surged on Tuesday, driven by China's central bank unveiling its boldest stimulus in years to support its economy. File Photo - Reuters
BEIJING: Asian stocks surged on Tuesday, driven by China's central bank unveiling its boldest stimulus in years to support its economy, while concerns over escalating conflict in the Middle East further fuelled oil prices.
The stimulus package includes lowering borrowing costs and injecting liquidity to counter a property sector downturn. Meanwhile, Japan and South Korea also saw stock gains, with investors hopeful for further US rate cuts, reported dpa-AFX news.
The central bank said it will lower borrowing costs and inject more liquidity into the system that would free up more money for lending.
Regulators also unveiled plans to support stable development of the stock market.
The dollar index regained some ground after having plunged to a near 14-month low following remarks by two Federal Reserve officials supporting last week's big interest-rate cut.
Gold held steady near record level in Asian trading and oil prices jumped more than 1 per cent amid concerns about the intensifying conflict between Israel and Hezbollah.
China's Shanghai Composite index surged 4.15 per cent to 2,863.13, marking its biggest single-day gain in more than two years. Hong Kong's Hang Seng index soared 4.13 per cent to 19,000.56.
Japanese markets ended higher as traders returned from a holiday. The Nikkei average rose 0.57 per cent to 37,940.59 as the Bank of Japan (BoJ) governor's cautious comments on inflation dampened speculation of an October rate hike. The broader Topix index settled 0.54 per cent higher at 2,656.73.
Seoul stocks rallied, driven by hopes for further US rate cuts and China stimulus optimism. The Kospi average climbed 1.14 per cent to 2,631.68, extending its winning streak to a sixth day.
--BERNAMA
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