Asian Stocks Soar Amid Fresh Stimulus Measures from China

Asian stocks surged on Tuesday, reaching their highest levels in over two and a half years, bolstered by comprehensive stimulus actions from China. This optimism was further sustained by expectations of additional rate cuts in the U.S., putting pressure on the dollar. China's financial regulators announced measures to cut bank reserves and reduce mortgage rates to ignite sluggish economic growth.

Asian stocks surged to their highest levels in more than two and a half years on Tuesday, fueled by broad stimulus measures from China. This uplift was reinforced by expectations of further U.S. rate cuts, which kept risk sentiment elevated while the dollar remained under pressure.

During an eagerly awaited press conference, China's top financial regulators revealed a series of measures aimed at boosting the faltering economy. Key actions included reducing bank reserves by 50 basis points and lowering mortgage rates. "These are pretty bold moves," commented Kyle Rodda, senior financial market analyst at Capital.Com, highlighting the measures' positive impact on financial markets and the banking sector.

As a result, Chinese stocks rallied, with the blue-chip CSI300 Index rising 2.4% and the Shanghai Composite Index gaining 2.38%. Hong Kong's Hang Seng Index rose over 3.2% to a four-month high, helping lift MSCI's broadest index of Asia-Pacific shares outside Japan by 0.92%. European stock markets also opened stronger, reflecting the positive momentum from Asia.

(With inputs from agencies.)