Chinese stocks experienced a notable surge on Wednesday, energizing regional markets and contributing to a global rally driven by stimulus measures, which also supported risk-sensitive currencies. Meanwhile, Brent crude oil prices lingered near a three-week high.
The U.S. dollar weakened following the release of disappointing macroeconomic data, which heightened expectations for a significant interest rate cut by the Federal Reserve at its upcoming meeting. In contrast, gold prices climbed to a new all-time high.
As of 0230 GMT, mainland Chinese blue-chip stocks surged by 3.1%, building on a robust 4.3% increase from the previous session. In Hong Kong, the Hang Seng Index rose by 2.2%, following a 4.1% jump on Tuesday.
The positive momentum in Chinese stocks invigorated other regional indexes, with Taiwan’s benchmark gaining 1.3% and South Korea’s Kospi increasing by 0.1%. Additionally, MSCI’s broadest index of Asia-Pacific shares outside Japan rose by 1%.
Japan’s Nikkei Index rebounded from initial losses to gain 0.3%, benefiting from a decline in the yen, which is typically seen as a safe haven asset.
Following its announcement of comprehensive policy easing on Tuesday, the People’s Bank of China (PBOC) further lowered medium-term lending rates to banks on Wednesday. This wide-ranging stimulus—marking the largest since the pandemic—includes initiatives aimed at revitalizing the stock market and supporting the struggling property sector.
“Attention in Asia is firmly focused on China,” noted analysts from UBS in a recent client report.
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