FX.co ★ Asian Shares Rally As China Unleashes Boldest Stimulus In Years

**Asian Stocks Rise on China's Major Economic Stimulus Amid global Economic Activities**

Asian stocks rose on Tuesday following the announcement of China's most significant economic stimulus measures since the pandemic, aimed at bolstering the faltering economy, particularly the prolonged downturn in the property sector.

China's central bank announced plans to reduce borrowing costs and inject additional liquidity into the financial system, thereby increasing the availability of funds for lending. Additionally, regulatory authorities revealed strategies to promote the stable development of the stock market.

Meanwhile, the dollar index, which had recently plummeted to a near 14-month low, regained some traction after comments from two Federal Reserve officials who expressed support for last week’s substantial interest-rate cut.

Gold remained steady near record levels in Asian markets, while oil prices surged more than 1% due to escalating tensions between Israel and Hezbollah.

**Stock Market Performances**

- **China**: The Shanghai Composite Index climbed 4.15% to close at 2,863.13, its most significant one-day gain in over two years. Hong Kong's Hang Seng Index also surged 4.13%, reaching 19,000.56 points.

- **Japan**: Japanese markets closed higher as traders returned from a holiday. The Nikkei average increased by 0.57% to 37,940.59 following Bank of Japan Governor’s cautious remarks on inflation, which reduced speculation of an October rate hike. The broader Topix Index rose by 0.54%, ending at 2,656.73. Notably, Japan's factory activity contracted more than expected in September, but growth in the service sector sustained overall business momentum.

- **South Korea**: Buoyed by optimistic sentiments surrounding additional U.S. rate cuts and China’s stimulus measures, the Kospi Index expanded by 1.14%, closing at 2,631.68—marking its sixth consecutive day of gains. Shares of LG Energy Solution and Samsung SDI saw significant increases, reflecting Tesla's overnight 4.9% rise.

- **Australia**: Australian markets showed a marginal decline after the Reserve Bank of Australia (RBA) kept the cash rate steady but maintained a stringent stance on inflation, reducing the likelihood of a December rate cut. The S&P/ASX 200 eased by 0.13% to 8,142 due to declining financial stocks, which outweighed gains in the mining and energy sectors. The broader All Ordinaries Index remained flat, ending with a slight positive bias at 8,385.10.

Key movements included:

- Westpac and Commonwealth Bank of Australia each fell over 3%.

- BHP advanced by 3.3% and Rio Tinto by 3.7%.

- Aristocrat Leisure climbed 2.1% after securing an injunction against a competing U.S. game.

- Coles Group and Woolworths both saw declines following lawsuits over misleading discount claims.

- **New Zealand**: The S&P/NZX 50 Index in New Zealand dropped 0.81% to settle at 12,303.99.

**U.S. Market Summary**

U.S. equities closed marginally higher. Investors reacted positively to hints from Federal Reserve officials about potential further easing and reports from Bloomberg that Apollo Global Management (APO) proposed a multibillion-dollar investment in Intel.

Sector indices showed modest gains:

- The Dow Jones Industrial Average ticked up by 0.2%.

- The S&P 500 rose by 0.3%, reaching record highs.

- The Nasdaq Composite advanced by 0.1%.

U.S. economic data revealed a steady gauge of business activity in September, although average prices for goods and services exhibited the most rapid increase in six months.

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