By Ambar Warrick
Investing.com-- Asian stocks rose on Tuesday as investors bet that China would roll out more stimulus measures to improve economic growth, while the Australian benchmark was supported by BHP after the miner logged a record annual profit.
China’s bluechip Shanghai Shenzhen CSI 300 index edged 0.1% higher, while the Shanghai Composite index added 0.2%.
In Southeast Asia, Philippine shares jumped 0.9%, while Malaysia and Indonesia added 0.7% and 0.3%, respectively. China is a major export destination for most of the region.
The People’s Bank of China unexpectedly cut rates on Monday, as it came under increasing pressure to loosen policy and facilitate economic growth.
The cut was also helmed by a batch of weak economic data from the mainland, which shows its economy is still under pressure from several COVID-19 lockdowns imposed this year.
But investors bet that the government would roll out even more stimulus to shore up economic growth. Along with the rate cut, Reuters reported on Tuesday that the government is also supporting beleaguered property developers with bond guarantees.
Australia’s ASX 200 jumped 0.5% on support from BHP Group (NYSE:BHP), the largest stock in the country.
BHP surged 4.5% after the mining giant reported a record profit for fiscal 2022, and forecast an improvement in China’s economy this year. The firm, which is the world’s largest miner, is largely dependent on China as a buyer of its iron ore and metal exports.
Asian stocks also received a strong lead-in from Wall Street, with major indexes gaining on bets that weakening economic growth could spur slower interest rate hikes by the Federal Reserve.
Thai stocks rose 0.2%, as the central bank forecast continued economic growth in the country, even after the economy expanded by less than expected in the second quarter.
The Thai economy grew at a pace of 2.5% in the second quarter, lower than estimates of 3.1%.