Hong Kong, Shanghai rally on China stimulus on mixed day for markets [Video]

Hong Kong and Shanghai stocks rallied Tuesday after China unveiled fresh stimulus measures as the country’s leaders struggle to kickstart growth in the world’s number two economy.

After a string of weak data that has fanned worries about the financial health of the country and led to calls for more help to boost growth, the central bank said it would make it easier for lenders and lower a key interest rate.

The decision came as traders were already upbeat after the Federal Reserve last week lowered borrowing costs for the first time since 2020 and indicated more were in the pipeline through to 2026.

China’s economy, the world’s second-largest, has yet to achieve a highly anticipated post-pandemic recovery as it is battered by a prolonged property sector debt crisis, continued deflationary pressure and high unemployment.

While Beijing has resisted calls to unveil a so-called bazooka stimulus similar to that seen …