Asian stocks surged to a two-and-a-half-year high on Tuesday, driven by Chinese stimulus measures and anticipation of further US rate cuts. China announced a series of measures, including a 50-basis point cut in bank reserves and lower mortgage rates, to boost its economy. This news lifted risk sentiment and weighed on the dollar. The announcement sent Chinese stocks soaring, with the blue-chip CSI300 Index and the broader Shanghai Composite both opening up 1 per cent. Hong Kong's Hang Seng Index rose over 2 per cent, and the mainland properties index surged 5 per cent. The stimulus measures contributed to a broader rally in Asian markets, with MSCI's broadest index of Asia-Pacific shares outside Japan rising 0.41 per cent to its highest level since April 2022. In Japan, the Nikkei index surged 1.4 per cent to a near three-week high ahead of a highly anticipated speech by Bank of Japan Governor Kazuo Ueda. Overnight, US stocks closed modestly higher as traders continued to digest the Fed's rate cut. The dollar index was trading near its one-year low at 100.95. The euro was steady, while the Australian dollar was slightly lower. In commodities, oil prices were slightly higher, supported by a weaker US dollar. The dollar index stood at 100.95, near last week's one-year low of 100.21. The yen remained stable at 143.65 per dollar. The euro held steady at $1.11055 in early Asia. The Australian dollar dipped 0.15 per cent to $0.6828. Oil prices increased slightly in early trading, with Brent crude futures up 0.26 per cent at $74.09 a barrel and US crude futures rising 0.3 per cent to $70.6. Oil prices fell on Monday due to concerns about demand and weak economic data from Europe. Attribution: Reuters Subediting: M. S. Salama
