SINGAPORE- Asian stocks edged higher on Tuesday on receding worries about the impact of the Omicron variant while Chinese markets gained after the central bank there eased monetary policy.
MSCI’s broadest index of Asia-Pacific shares outside Japan advanced 0.6 percent after declining on Monday to the lowest level in one year.
The benchmark has lost 6 percent so far this year, with Hong Kong markets figuring among the big losers, while Indian and Taiwanese stocks outperformed.
On Tuesday, Australia’s S&P/ASX200 rose 0.5 percent, while Japan’s Nikkei advanced 1.1 percent as risk-on sentiment pushed US stocks higher.
China’s CSI300 index gained 0.7 percent and Hong Kong’s Hang Seng Index advanced 1.3 percent as the central bank freed up $188 billion in liquidity through a policy easing.
The People’s Bank of China said on Monday it would cut the amount of cash that banks must hold in reserve, its second such move this year, releasing the funds in long-term liquidity to bolster slowing economic growth.
The world’s second-largest economy, which staged an impressive rebound from last year’s pandemic slump, has lost momentum in recent months as it grapples with a slowing manufacturing sector, debt problems in the property market and persistent COVID-19 outbreaks.
Monday’s move acted as “a convenient, if not coincident, cushion for Evergrande’s looming debt default,” Vishnu Varathan, head of economics and strategy at Mizuho Bank, said in a note.
Shares in embattled developer Evergrande rose 7 percent after hitting a record low on Monday as markets awaited if the real estate giant has paid $82.5 million coupons with a 30-day grace period coming to an end.
Elsewhere, markets were supported by gains on Wall Street, where economically sensitive stocks outperformed.
