Asian Shares Rally As China Unleashes Boldest Stimulus In Years

(RTTNews) - Asian stocks advanced on Tuesday after China's central bank unveiled its biggest stimulus since the pandemic to support the economy and counter a prolonged downturn in the property sector.

The central bank said it will lower borrowing costs and inject more liquidity into the system that would free up more money for lending.

Regulators also unveiled plans to support stable development of the stock market.

The dollar index regained some ground after having plunged to a near 14-month low following remarks by two Federal Reserve officials supporting last week's big interest-rate cut.

Gold held steady near record level in Asian trading and oil prices jumped more than 1 percent amid concerns about the intensifying conflict between Israel and Hezbollah.

China's Shanghai Composite index surged 4.15 percent to 2,863.13, marking its biggest single-day gain in more than two years. Hong Kong's Hang Seng index soared 4.13 percent to 19,000.56.

Japanese markets ended higher as traders returned from a holiday. The Nikkei average rose 0.57 percent to 37,940.59 as BoJ Governor's cautious comments on inflation dampened speculation of an October rate hike. The broader Topix index settled 0.54 percent higher at 2,656.73.

Japan's factory activity shrank more than expected in September, but further expansion in the service sector supported overall business momentum, a survey showed today.

Seoul stocks rallied, driven by hopes for further U.S. rate cuts and China stimulus optimism. The Kospi average climbed 1.14 percent to 2,631.68, extending its winning streak to a sixth day.

Battery maker LG Energy Solution soared 4 percent and its smaller rival Samsung SDI added 2.2 percent, reflecting Tesla's 4.9 percent jump overnight.

Australian markets finished marginally lower after the Reserve Bank of Australia (RBA) held the cash rate steady as expected but maintained a firm stance on inflation - reducing the likelihood of a December rate cut.

The benchmark S&P/ASX 200 slid 0.13 percent to 8,142 as financials declined, offsetting gains in the mining and energy sectors.

The broader All Ordinaries index ended flat with a positive bias at 8,385.10. Banks Westpac and Commonwealth Bank of Australia fell over 3 percent each while mining giant BHP rallied 3.3 percent and Rio Tinto surged 3.7 percent.

Casino firm Aristocrat Leisure climbed 2.1 percent after winning an injunction against a competing game in the U.S.

Supermarket chain Coles Group lost 3 percent and Woolworths fell 2.9 percent after they were sued over fake discount claims.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index fell 0.81 percent to 12,303.99.

U.S. stocks closed marginally higher overnight as Fed officials hinted at further easing and the Bloomberg reported that Apollo Global Management (APO) has offered to make a multibillion-dollar investment in Intel.

On the data front, a gauge of U.S. business activity held steady in September, but average prices charged for goods and services rose at the fastest pace in six months.

The Dow edged up 0.2 percent and the S&P 500 added 0.3 percent to post record highs, while the tech-heavy Nasdaq Composite inched up 0.1 percent.