Chinese Stocks Soar Amid Stimulus; Regional Markets Struggle

Chinese stocks surged for a second day, fueled by stimulus measures, while other regional markets struggled. The People's Bank of China announced wide-ranging policy easing, including a rate cut. Meanwhile, U.S. consumer confidence dropped, boosting expectations for significant Fed rate cuts. Gold hit a new peak, while oil prices retreated.

Chinese stocks saw substantial gains on Wednesday, continuing a stimulus-driven rally for the second consecutive day. However, other markets in the region faced struggles, and crude oil prices dipped from recent highs. The dollar reached new lows against the euro and sterling, following weak U.S. macroeconomic data that has increased speculations of a significant interest rate cut by the Federal Reserve in its upcoming meeting. Gold prices soared to an all-time high.

Mainland Chinese blue chips rose by 2.4% at 0511 GMT, after a 4.3% increase in the previous session. Hong Kong's Hang Seng climbed 2%, adding to a 4.1% surge seen on Tuesday. These strong performances briefly lifted other regional indexes before they faltered. Australia's benchmark ended flat, while South Korea's Kospi dipped 0.1%.

Meanwhile, the MSCI's index of Asia-Pacific shares outside Japan showed a 0.9% gain. Japan's Nikkei also rose 0.4%, aided by stable yen exchange rates and Wall Street's record gains. However, S&P 500 futures pointed 0.14% lower, and Pan-European STOXX 50 futures dropped 0.4%. China's broad-based policy easing, the largest since the pandemic, aims to stimulate the stock market and support the struggling property sector.

(With inputs from agencies.)