06:49 AM EDT, 09/24/2024 (MT Newswires) -- Asian stock markets rallied Tuesday after Beijing's central bank announced a round of stimulus measures and following economic reports from the US, including the positive S&P Global PMI report on Monday that pointed to ongoing expansion.

Hong Kong and Shanghai exchanges gained sharply, and Tokyo finished in green, as did most other regional exchanges.

In Japan, the Nikkei 225 opened higher on Wall Street cues and an improved outlook for accommodation from the Bank of Japan, finishing up 0.6% as a softer yen assisted export issues.

The benchmark Nikkei 225 rose 216.88 to 37,940.59 as gaining issues outnumbered losers 142 to 81.

Leading the upside was Japan Steel Works, up 9.9%, while Renesas Electronics declined 4.7%.

In economic news, Bank of Japan Governor Kazuo Ueda, speaking before Osaka business leaders, said a decision to raise interest rates would be made "in a timely and appropriate manner while taking account of various uncertainties," and added that circumstances do not pressure the central bank to act quickly.

In Hong Kong, the Hang Seng Index opened higher and rose to the close, finishing up 4.1% after Beijing unveiled monetary stimulus measures to boost the sluggish mainland China economy.

The broad gauge Hang Seng rose 753.45 to 19,000.56, as gaining issues outnumbered losers 77 to five. The Hang Seng TECH Index gained 5.9% on the day, while the Mainland Properties Index rose 5.1%.

Leading the upside was China Merchants Bank, up 10.8%, while utility company PowerAssets declined 3.1%.

On the mainland, the Shanghai Composite rose 4.2% to 2,863.13.

In economic news, the People's Bank of China (PBoC) on Tuesday announced the central bank will cut its seven-day reverse repo rate to 1.5% from 1.7% and reduce the reserve requirement ratio (the amount of cash a bank must keep in reserve, as a percent of total loans) to 9.5% from 10%.

Beijing policymakers will also cut mortgage rates by 50 basis points and the down-payment ratio for second-time homebuyers to 15%, from 25%.

The PBoC will now cover 100% of bank loans for housing inventory purchases by certain institutional buyers, up from 60%.

For the nation's equities markets, the PBoC will set up a 500 billion yuan swap facility for brokers and funds to buy stocks. It will also set up a 300 billion yuan refinancing facility for corporate stock buybacks.

On the other regional exchanges, the S. Korean KOSPI rose 1.1%; the Taiwan TWSE inclined 0.7%; the Australian ASX 200 declined 0.1%; the Singapore Straits Times Index fell 0.4%, and the Thai Set inclined 1%. In late trading in Mumbai, the Sensex was flat.