China's Economic Rebound Sparks Global Market Reactions

China stocks surged after Beijing announced plans for rate cuts and boosting consumption. This positive momentum impacted commodities and currencies, notably the Australian dollar. Global stocks were mixed, with US inflation data on the horizon. Investors watched for further monetary easing details, impacting markets worldwide.

China's stock market witnessed a significant surge on Tuesday, following Beijing's pledge to implement rate cuts and boost consumption—a move that brought support to commodities and the Australian dollar. These developments unfolded as global markets wavered, with a crucial U.S. inflation report looming on the horizon.

The Australian central bank is expected to maintain its cash rate at 4.35%. Although the S&P 500 experienced a 0.6% drop, Asia's markets displayed resilience. The MSCI's broadest index of Asia-Pacific shares outside Japan climbed 0.3%, spearheaded by gains in the Hang Seng and CSI300 indices, while Japan's Nikkei edged up 0.4%.

China's Politburo meeting ignited a late surge in Hong Kong stocks, reinforced by shifts in monetary policy towards a more accommodative stance, according to state media Xinhua. Investors anticipate further details from the Central Economic Work Conference later this week. Although the bond market rally signals some skepticism about long-term growth, China's major stock indexes reached one-month highs.

(With inputs from agencies.)