Investing.com– Most Asian stocks rose on Wednesday, with Chinese markets seeing outsized gains after Beijing unveiled a string of new stimulus measures aimed at shoring up economic growth.
Regional markets took a positive lead-in from Wall Street, where strength in technology stocks pushed the and the to record highs. U.S. stock index futures steadied in Asian trade.
Sentiment towards stock markets remained upbeat after a bumper 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 surge on stimulus cheer
Chinese markets were by far the best performers on Wednesday, with the and indexes surging around 3% each. Hong Kong’s index added 2.5%.
Markets rallied after the People’s Bank of China announced a slew of stimulus measures on Tuesday, including lower bank reserve requirements and lower mortgage rates.
Beijing was also seen considering bumper liquidity support for local stocks.
The measures ramped up hopes that Chinese economic growth will improve, after nearly three years of rampant disinflation and sluggish business activity.
Chinese stocks also benefited from bargain buying, given that the CSI 300 and Shanghai Composite indexes had slumped to more than seven-month lows earlier in September.
But analysts said that the measures would be insufficient in sparking a Chinese economic turnaround, with ANZ stating that more fiscal measures were needed to support growth.
Still, optimism over China spilled over into most regional markets with exposure to the country. South Korea’s rose 0.2%
Japan’s index rose 0.5%, while the broader was flat after data showed producer inflation grew slightly in August. The reading came just days before a consumer inflation from Tokyo, due on Friday.
Futures for India’s index pointed to a muted open, as the index faced resistance in making new highs at 26,000 points.
Australian stocks struggle amid mixed inflation, hawkish RBA
Australia’s index traded sideways on Wednesday, taking little support from optimism over China, which is a major trading partner for Australia.
Local markets were grappling with hawkish signals from the Reserve Bank of Australia, which on Tuesday. Governor Michele Bullock struck a slightly less hawkish stance than some were expecting, although the bank flagged no immediate changes to rates and is likely to keep them high for longer.
The RBA’s stance was driven chiefly by sticky inflation, although data on Wednesday showed inflation eased substantially in August. But core CPI inflation still remained sticky and above the RBA’s target.
