Asian stocks rose for a second day after U.S. indexes reached another record as Chinas unexpected interest-rate cut stoked optimism in the global economy.
The MSCI Asia Pacific excluding Japan Index climbed 0.5 percent to 475.75 as of 9:02 a.m. in Seoul. China reduced interest rates last week, joining the European Central Bank and the Bank of Japan in deploying fresh stimulus. That contrasts with the Federal Reserve, which has ended its bond-buying program as the U.S. economy strengthens. ECB President Mario Draghi said Nov. 21 he will do what is necessary to spur inflation.
South Koreas Kospi index surged 1 percent. Australias S&P/ASX 200 Index jumped 1.4 percent. New Zealands NZX 50 Index was little changed. Japanese markets are closed for a holiday. Futures on Hong Kongs Hang Seng Index soared 2.1 percent in their most recent trading session, with the cash market yet to open today. Contracts on the Hang Seng China Enterprises Index surged 3.2 percent.
China cut benchmark interest rates for the first time since July 2012 as leaders step up support for the worlds second-largest economy. The one-year lending rate was reduced by 0.4 percentage point to 5.6 percent, while the one-year deposit rate was lowered by 0.25 percentage point to 2.75 percent, the Peoples Bank of China said on its website on Nov. 21.