Asian shares saw gains on Tuesday, with Chinese markets leading the way following the announcement of measures by the central bank to bolster the economy. Hong Kong shares surged by 2%, while U.S. futures dipped slightly and oil prices rose.
The People's Bank of China revealed various policies to counter a prolonged downturn in the property sector, including a 0.5 percentage point cut in the reserve requirement for banks. This move is aimed at freeing up more funds for lending. Additionally, regulators in Beijing disclosed plans for new policies to support the stable development of the stock market.
Market analysts view these coordinated measures as a positive step, although some believe that greater fiscal support may be necessary to drive a significant growth turnaround. The Hang Seng in Hong Kong climbed over 400 points, while the Shanghai Composite index and the Nikkei 225 in Tokyo also posted gains.
On Wall Street, the S&P 500 and the Dow Jones Industrial Average reached new highs, with Tesla leading the way with a 4.9% gain. However, Trump Media & Technology Group experienced a 10.3% decline amid speculation about potential share sales by company insiders.
A report indicated that U.S. business activity is not growing as rapidly as expected, primarily due to a continued downturn in manufacturing. The Federal Reserve's recent interest rate cut reflects a shift in focus towards supporting the job market and overall economy, as inflation has decreased significantly from previous levels.
Looking ahead, upcoming economic reports will provide further insights into the U.S. economy, with a particular emphasis on employment data. The bond market remained stable, with the 10-year Treasury yield holding at 3.74% and the two-year Treasury yield slightly decreasing.
In early trading, U.S. benchmark crude oil prices rose, with Brent crude also seeing an increase. The U.S. dollar strengthened against the Japanese yen but weakened slightly against the euro.
