Asian Markets Cheer China’s Stimulus

Equity markets in Asia closed on a strong positive note tracking the euphoria generated by China’s surprise announcement of a 50-basis points cut in the reserve requirement for banks. The resultant liquidity infusion into the economy is seen supporting a fragile recovery.

China’s Shanghai Composite Index surged 3.03 percent to finish trading at 2,906.11. The day’s trading ranged between 2,906.79 and 2,821.71. The Shenzhen Component Index also added 2 percent to close at 8,856.22.

The Japanese benchmark Nikkei 225 added 10 points or 0.03 percent to end trading at 36,236.47. The day’s trading range was between 36,312.36 and 35,912.54.

DIC Corp was the top gainer with a surge of 5.5 percent followed by Nippon Paper Industries that added 4.9 percent. Mitsubishi Materials Corp, Furukawa Electric and Fuji Electric, all gained more than 3 percent.

Recruit Holdings, Shionogi, Chugai Pharmaceutical, Kikkoman Corp, Suzuki Motor Corp, all slipped more than 2 percent.

The Hang Seng Index of the Hong Kong Stock Exchange added 312 points or 1.96 percent from the previous close to finish trading at 16,211.96. The day’s trading range was between a high of 16,254.93 and a low of 15,828.93.

Korean Stock Exchange’s Kospi Index edged up 0.03 percent to close trading at 2,470.34. The day’s trading range was between 2,452.36 and 2,474.01.

Australia’s S&P/ASX200 closed trading at 7,555.40, gaining 36 points or 0.48 percent. The day’s trading range was between 7,519.20 and 7,558.80.

Weebit Nano surged 8.8 percent, followed by Mineral Resources that rallied 7.1 percent. Resmed rallied 6.4 percent. Mining business Incitec Pivot and healthcare equipment business Nanosonics, both added more than 4 percent.

Domino’s Pizza Enterprises tumbled 31 percent after first-half profits missed estimates. Sayona Mining plunged 9.1 percent. Core Lithium and Block, both slipped more than 5 percent. Homeco Daily Needs REIT erased 4.8 percent.

The NZX 50 of the New Zealand Stock Exchange added 33 points or…