Asian Stocks Surge to Multi-Year Highs Amid Chinese Stimulus Measures

Asian stocks reached their highest levels in over two and a half years, driven by numerous Chinese stimulus measures and expectations of more U.S. rate cuts. Chinese regulators announced significant financial policies, including cuts to bank reserves and mortgage rates, boosting investor sentiment and lifting major Asian market indices.

In a remarkable market rally, Asian stocks hit their peak in more than two and a half years on Tuesday, bolstered by a series of Chinese stimulus measures. The positive sentiment was further fueled by ongoing expectations of additional U.S. rate cuts, putting the dollar under pressure.

China's leading financial regulators introduced extensive measures at a much-anticipated press conference, opting to reduce bank reserves by 50 basis points and slash mortgage rates in an effort to invigorate the slowing economy. The blue-chip CSI300 Index and the broader Shanghai Composite index both surged by 1% at the opening, while Hong Kong's Hang Seng Index saw an over 2% spike.

MSCI's broad Asia-Pacific shares index outside Japan increased to levels last seen in April 2022. Market experts suggest that although these measures could bolster the economy, deeper underlying issues remain unresolved. Attention now shifts to the Reserve Bank of Australia's policy decisions and Federal Reserve's forthcoming moves, both pivotal in shaping investor confidence and market trends.

(With inputs from agencies.)