Asia's Stock Surge: Easing Signals Boost Market Optimism

Asian markets, including China and Hong Kong, rose amid reports of potential policy easing by Beijing. The Shanghai and Hang Seng indices posted gains, driven by hopes for reduced bank reserve requirements and U.S. rate cuts. Investors await China's economic data to evaluate recovery efforts.

Shares in China and Hong Kong climbed on Thursday, as a broader Asian rally took hold due to reports suggesting forthcoming policy easing from Beijing. State media hinted at measures that could bolster market confidence in the weeks ahead.

The Shanghai Composite Index rose by 0.3% to close at 3,236.03 points, while the blue-chip CSI300 index added 0.1%. Energy stocks increased by 1.3%, outpacing financials which gained 0.5%. Hong Kong's Hang Seng Index advanced 1.2%, with optimism further fueled by market speculation on potential U.S. Federal Reserve rate cuts this year amid falling core inflation.

Across the continent, the MSCI Asia ex-Japan index climbed 1.3%, and Japan's Nikkei Index rose 0.3%. Investor focus has shifted to possible reserve requirement ratio cuts by China's central bank before the Spring Festival, as state media suggested. Such moves could mitigate recent yuan depreciation pressures and enhance liquidity. Market participants eagerly await Friday's release of crucial economic indicators, including GDP figures and output data, to assess the impact of Beijing's support strategies.

(With inputs from agencies.)