Asia stocks rise on hopes regional central banks hold steady on rates

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HONG KONG : Asia stocks posted gains on Tuesday, boosted by investor optimism that the region's central banks will continue to pause or end interest rate hike cycles, whatever action the U.S. Federal Reserve takes. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.6 per cent as trading resum

On Tuesday morning, South Korea's central bank held interest rates steady for a second consecutive meeting, as expected. Gary Ng, senior economist at Natixis Corporate and Investment Bank, said Asian economies are more cautious about hiking rates as their determination to preserve growth outweighs concern over taming inflation, which is a bigger concern in the U.S. and Europe.

"I think investors are more optimistic in terms of seeing the end of the rate cycle," he added,"but whether we are already at the top - that is really the key driver of this oscillation that we see right now." Australia's S&P/ASX 200 index gained 1.4 per cent with miner Newcrest's shares jumping as much as 7.1 per cent on an improved takeover offer from Newmont, making it the top gainer on the benchmark.Shares of Chinese artificial intelligence company SenseTime surged as much as 11 per cent a day after it unveiled a series of new AI-powered products as it joins a global race to dominate the sector. SenseTime investor Alibaba itself rose as much as 3.8 per cent.

 

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