Shares in Hong Kong climbed 2%, the Hang Seng in Hong Kong soared more than 400 points to 18,604.26, the Shanghai Composite index was 0.9% higher at 2,772.58 and the Nikkei 225 index jumped 0.7% to 37,974.98
Asian shares rose on Tuesday, with Chinese markets logging the biggest gains after the central bank announced a slew of measures to support the economy.
Shares in Hong Kong climbed 2%. U.S. futures declined while oil prices rose.
Among various policies aimed at countering a prolonged downturn in the property sector, People’s Bank of China Governor Pan Gongsheng said the reserve requirement for banks would be cut by 0.5 percentage points and that the central bank would follow up with further cuts. That would free up more money for lending.
Regulators also plan new policies to support stable development of the stock market, Pan and other senior official told reporters in Beijing.
The coordinated measures, instead of “drip-feeding piecemeal support,” are “a step in the right direction,” according to Julian Evans-Pritchard of Capital Economics.
But it will probably be insufficient to drive a turnaround in growth unless followed up with greater fiscal support, he added.
The Hang Seng in Hong Kong soared more than 400 points to 18,604.26, while the Shanghai Composite index was 0.9% higher at 2,772.58.
In Tokyo, the Nikkei 225 index jumped 0.7% to 37,974.98, while the Kospi in Seoul was nearly unchanged at 2,602.30.
Australia’s S&P/ASX 200 declined 0.3% to 8,126.30.
On Monday, the S&P 500 gained 0.3% to 5,718.57, edging past its record set on Thursday. The DJIA added 0.1% to its own all-time high set on Friday and closed at 42,124.65. The Nasdaq composite added 0.1% to 17,974.27.
A report on Monday morning suggested U.S. business activity is not growing as quickly as economists expected, mostly because of a continued downturn in manufacturing. The preliminary report from S&P Global said U.S. manufacturing declined more strongly in September than in August and reached a 15-month low. It has been one of the parts of the economy hurt most by high interest rates.
