Asian stocks reached their highest level in over two and a half years after China unveiled a series of economic support measures.
Hong Kong’s shares surged 3.6%, and the Shanghai Composite index gained 3.4% after Pan Gongsheng, Governor of the People’s Bank of China, announced a 0.5 percentage point cut to the reserve requirement for banks, with further cuts expected. This move aims to free up additional funds for lending.
Investors responded positively, with shares of major developer Shimao Group rising 7.6% and Longfor Group gaining 4.6%.
The Hang Seng in Hong Kong soared over 600 points to 18,895.54, while the Shanghai Composite advanced nearly 100 points to 2,843.00. Optimism extended across the region, lifting MSCI’s broadest index of Asia-Pacific shares outside Japan by 0.9% to 591.47, a level last seen in April 2022.
In Tokyo, the Nikkei 225 index increased 0.9% to 38,077.33, and Seoul’s Kospi rose 0.8% to 2,622.13. Meanwhile, Australia’s S&P/ASX 200 dipped 0.2% to 8,135.50.
On Wall Street, the Dow Jones Industrial Average gained 0.2% to 42,124.65, the S&P 500 rose 0.3% to 5,718.57, and the Nasdaq Composite edged up 0.1% to 17,974.27.
The yield on 10-year US Treasury notes, a key influence on global investment, increased to 3.75%, up from 3.73% on Friday.
