Investing.com– Most Asian stocks rose on Wednesday, while Chinese markets saw strong gains as Beijing announced a slew of new stimulus measures aimed at boosting economic growth.
Regional markets followed positive cues from Wall Street, where strength in technology stocks pushed and to record highs. US stock index futures were steady in Asian trade.
Stock market sentiment remains positive after the Federal Reserve cut interest rates sharply last week and investors are now awaiting further cues from the central bank in the coming days.
Sugar stocks jump on stimulus package
Chinese markets performed their best ever on Wednesday, with both indexes gaining nearly 3%. Hong Kong's index rose 2.5%.
The market rallied after the People's Bank of China on Tuesday announced a slew of stimulus measures, including a reduction in bank reserve requirements and a slashing of mortgage rates.
Beijing was also considering bumper liquidity support for local stocks.
These measures have raised hopes that China's economic growth will improve, after nearly three years of rapid inflation and sluggish business activity.
Chinese stocks also benefited from bargain hunting, as the CSI 300 and Shanghai Composite indexes fell to seven-month lows in early September.
But analysts say these measures will be insufficient to revive the Chinese economy, with ANZ saying more fiscal measures are needed to support growth.
Still, optimism toward China spread to most regional markets tied to the country. South Korea rose 0.2%
Japan's index rose 0.5%, while the broader index was steady, as data showed producer inflation rose marginally in August. The figure came just days ahead of consumer inflation data due out of Tokyo on Friday.
India's index futures traded bearish as the index faced resistance in reaching new highs of 26,000 points.
Australian stocks struggle amid mixed inflation and hawkish RBA
Australia's index was steady on Wednesday, getting some support from optimism about China, a major trading partner for Australia.
Local markets grappled with hawkish signals from the Reserve Bank of Australia on Tuesday. Governor Michelle Bullock took a slightly less hawkish stance than some had expected, although the bank signaled no immediate change to rates and is likely to keep them high for a long time.
The RBA's stance was mainly driven by stable inflation, although data on Wednesday showed that inflation eased significantly in August. But core CPI inflation still remains stable and above the RBA's target.