Aug 16, 2022 12:16AM ET
By: AnalysisWatch
Asian shares rose on Tuesday as investors bet on China taking further stimulus measures to improve economic growth, while the Australian benchmark was boosted by BHP after the mining company posted a record annual profit.
China's blue-chip Shanghai Shenzhen CSI 300 index rose 0.1%, and the Shanghai Composite index added 0.2%.
In Southeast Asia, Philippine stocks 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.
On Monday, the People's Bank of China unexpectedly cut interest rates as it comes under increasing pressure to ease policy and moderate economic growth.
The cut was also prompted by a string of weak economic data from mainland China that showed its economy is still under pressure from several blockades imposed by COVID-19 this year.
However, investors were betting that the government would introduce even more stimulus to boost economic growth. On Tuesday, Reuters reported that the government was also backing troubled developers with bond guarantees.
Australia's ASX 200 index jumped 0.5% on support from BHP Group, the country's largest stock.
The mining giant reported a record profit for the 2022 fiscal year and forecast an improvement in China's economy this year. The company, which is the world's largest mining company, is largely dependent on China as a buyer of its iron ore and metal exports.
Asian stocks also got a strong boost from Wall Street, where major indexes rose 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 grew less than expected in the second quarter.
Thailand's economy grew at a 2.5% pace in the second quarter, lower than the 3.1% estimate.