SINGAPORE- Asian stocks rose on Tuesday to their highest in more than two and half years, heartened by broad stimulus measures from China while expectations for more US rate cuts kept risk sentiment aloft and the dollar under pressure.

In an eagerly awaited press conference, China’s top financial regulators unveiled a slate of measures, saying it would cut bank reserves by 50 basis points while reducing mortgage rates to try to spur sluggish economic growth.

“I think these are pretty bold moves from authorities,” said Kyle Rodda, senior financial market analyst at Capital.Com.

“It doesn’t qualify as ‘big bang’ stimulus. It’s mostly targeted at financial markets and supporting the banking system… Overall, for investors, it’s a very bullish thing.”

The moves sent Chinese stocks higher, with the blue-chip CSI300 Index rising 2.4 percent , while the Shanghai Composite index also gained 2.38 percent . Hong Kong’s Hang Seng Index jumped over 3.2 percent  to a four month high.

That pushed MSCI’s broadest index of Asia-Pacific shares outside Japan 0.92 percent  higher to 591.47, levels last seen in April 2022.

European stock markets also pointed to a stronger open, with Eurostoxx 50 futures and German DAX futures 0.5 percent  higher, while FTSE futures was up 0.355.

Chinese stocks have been laggards in the region, with the CSI300 index down 4 percent  in the year, having hit multi-year lows as piecemeal stimulus measures from authorities failed to galvanize its shaky economy and disappointed markets.

Vasu Menon, managing director of investment strategy at OCBC, said questions remain on whether the latest measures are the silver bullet that will change the tide for the Chinese economy and stock market.