Asian stocks rallied on Tuesday, led by Chinese markets, following Beijing's announcement of broad monetary stimulus and property market support measures. China's CSI 300 and Shanghai Composite indexes surged over 3.5%, while Hong Kong's Hang Seng index jumped more than 3.7%.
The People's Bank of China unveiled a comprehensive package of stimulus measures, including a 50 basis point cut to banks' reserve requirement ratio (RRR), which is expected to free up about 1 trillion yuan ($142 billion) for new lending. The central bank also signaled potential further RRR cuts later this year.
Additional measures announced include lowering key interest rates, reducing mortgage rates for existing loans, and easing down payment requirements for second-home buyers. The PBOC also introduced new tools to boost capital markets and support stock purchases.
Japan's Nikkei 225 rose 0.6%, while the broader TOPIX added 0.5%. PMI data showed Japan's services sector grew more than expected in September, although manufacturing activity continued to contract.
Australia's ASX 200 fell 0.2%, trimming earlier losses after the Reserve Bank of Australia kept interest rates unchanged at 4.35% as expected. The RBA maintained a hawkish stance, stating that inflation remains too high and that it's not ruling out further measures to curb price pressures.
The Australian dollar strengthened slightly following the RBA decision, with the AUDUSD pair rising 0.2% and approaching a 2024 peak.
Oil prices increased on Tuesday, with Brent crude futures up 0.93% at $73.92 a barrel and WTI crude futures rising 1.05% to $71.11. The gains were attributed to China's stimulus measures and ongoing tensions in the Middle East.
The Chinese yuan firmed against the dollar, with USDCNY falling 0.2% to its lowest level since May 2023. The offshore yuan (USDCNH) also hit a 16-month low.
In corporate news, Boeing made a "best and final" pay offer to thousands of striking workers, but the International Association of Machinists and Aerospace Workers declined to put it to a vote, citing insufficient improvements in key areas.
U.S. stock futures retreated in Asian trade, suggesting that the recent rally on Wall Street may be stalling. Investors remain focused on upcoming U.S. inflation data and further cues from the Federal Reserve following last week's rate cut.
EURUSD is flat, silver is up 1.4% and gold is gaining 0.4% currently setting new all-time-high. Cryptocurrency market is lower after green day yesterday; currently Bitcoin is down 0.4% today and Ethereum is trading almost 1% lower.