Asian Markets Rally on Hopes of Easing Measures from Beijing

Shares in China and Hong Kong rose as a broader Asian market rally gains momentum. Investors are optimistic about potential easing measures from Beijing and possible U.S. Federal Reserve rate cuts. The Shanghai Composite and Hang Seng indices saw modest gains, despite setbacks in chip and property sectors.

Markets in China and Hong Kong experienced an uptick on Thursday, joining a general rally across Asia. Investor sentiment was bolstered by state media reports indicating possible easing measures from Beijing in the coming weeks. The Shanghai Composite Index increased by 0.21%, reaching 3,233.92 points by midday.

The blue-chip CSI300 Index saw a slight rise of 0.02%, with the financial sector sub-index climbing 0.41%. Meanwhile, Hong Kong's benchmark Hang Seng Index gained 0.83%, closing at 19,445.68. Across Asia, optimism prevailed as traders speculated on potential rate cuts by the U.S. Federal Reserve this year, prompted by subdued core inflation data.

Around the region, MSCI's Asia ex-Japan stock index rose by 1.19%, while Japan's Nikkei was up 0.28%. However, some sectors lagged; chip stocks fell 0.5% as the U.S. tightened export restrictions. China's property market also faced challenges, with China Vanke under increased scrutiny for its debt repayment capabilities, resulting in its yuan bonds dropping over 20%.

(With inputs from agencies.)