China's Economic Optimism Spurs Global Market Reactions

China's stocks surged and the Australian dollar gained due to China's promises of rate cuts and increased consumption. However, global stocks wobbled before a U.S. inflation report. Notable gains in China's indexes were seen despite mixed trade data, while Australian miners also benefited from China's policy shift.

China's stock market saw significant gains as the nation's new pledges for rate cuts and enhanced consumption spurred optimism, helping lift the Australian dollar as well. Despite this, global stocks exhibited volatility ahead of a key U.S. inflation report.

Leading substantial improvements were Chinese indices, with Hang Seng up 1% and CSI300 up 2%, while Japan's Nikkei showed modest gains. Meanwhile, Australia's central bank held its cash rate steady, causing a dip in the Aussie dollar as policymakers softened their language.

Investors' attention remains on upcoming fiscal announcements, amid tempered enthusiasm for China's long-term growth. Australian mineral stocks enjoyed a boost, reflecting favorable sentiment despite challenging trade figures from China.

(With inputs from agencies.)