The gains were supported by a tech surge following a strong earnings outlook from US chip giant Micron and as South Korean behemoth SK hynix said it had started mass production of a more advanced artificial intelligence chip.
The positive sentiment on trading floors comes ahead of the release of the Federal Reserve's preferred gauge of inflation, which could play a role in officials' plans for interest rates, following last week's mood-boosting bumper cut.
China announced a fresh batch of measures to boost jobs -- particularly among young people -- and help the poorest with handouts, while Bloomberg reported leaders were considering pumping more than $140 billion into its large state-run banks.
The move, which aims to give them more room to support the economy, would mark the first since 2008 during the global financial crisis.
President Xi Jinping and other leaders said after a top-level meeting on Thursday they would address property-sector worries and improve care for the elderly and children.
That came after they admitted that "some new situations and problems have emerged in the current running of the economy", according to state media.
This week's stimulus represents a "shift towards a more aggressive easing stance, given the sustained weakness in domestic growth", said JP Morgan Asset Management global market strategist Chaoping Zhu.
"The sense of urgency may convince investors that more policy support is on its way."
But while the policies were broadly welcomed, analysts warned much more is needed.
"There is no silver bullet that can bring China back to the double digit growth levels markets have been used to," said Charu Chanana, head of FX strategy at Saxo Capital Markets.
"There is no single policy step that will resolve China's structural issues of debt, deflation and demographics. But the direction of travel is encouraging, and this can help to repair some of the confidence levels in the economy and policymakers."
Tech shares rocketed, having been the main driver of a surge in global markets this year -- pushing several to record highs -- as demand for all things AI heats up.
The latest jump came after Micron Technology unveiled on Wednesday better-than-expected sales and profit forecasts, which ramped up hopes for demand for AI gear.
That was followed Thursday by reports that SK hynix had started producing the new, advanced chips, pushing its stocks more than eight percent higher in Seoul.
There were also big gains for Samsung and Japan's Sony, while e-commerce titan Alibaba and JD.com joined the tech surge in Hong Kong.
Tokyo closed up 2.8 percent as exporters were helped by the yen hitting 145 per dollar for the first time since the start of the month.
Hong Kong and Shanghai continued to build on the week's strong advance by climbing more than three percent, with the latter topping 3,000 points for the first time since July.
In Hong Kong, property firms were boosted on news of the help for the real estate sector, with Sunac, Agile Group, Fantasia and Sino-Ocean Group up between 20 and 30 percent.
Markets in Sydney, Seoul, Singapore, Wellington, Taipei, Manila and Mumbai were also well up, along with London, Paris and Frankfurt.
Attention is also turning to Friday's release of US personal consumption expenditure figures.
Debate is swirling on the Fed's next move after last week's 50-basis-point rate cut, and further easing in the PCE could boost the chances of another big move.
- Key figures around 0810 GMT -
Tokyo - Nikkei 225: UP 2.8 percent at 38,925.63 (close)
Hong Kong - Hang Seng Index: UP 4.2 percent at 19,924.58 (close)
Shanghai - Composite: UP 3.6 percent at 3,000.95 (close)
London - FTSE 100: UP 0.5 percent at 8,311.59
Euro/dollar: UP at $1.1132 from $1.1130 on Wednesday
Pound/dollar: UP at $1.3340 from $1.3317
Dollar/yen: UP at 145.00 yen from 144.81 yen
Euro/pound: DOWN at 83.45 pence from 83.54 pence
West Texas Intermediate: DOWN 2.0 percent at $68.30 per barrel
Brent North Sea Crude: DOWN 2.0 percent at $72.02 per barrel
New York - Dow: DOWN 0.7 percent at 41,914.75 (close)
China admits economy facing new 'problems', vows to fix property sector
Beijing (AFP) Sept 26, 2024 -
Chinese President Xi Jinping and other top leaders admitted Thursday that the world's number two economy was facing new "problems" and vowed to resolve a long-running housing sector crisis.
Beijing has this week unveiled a raft of measures to boost its ailing economy, which it has targeted to grow five percent this year -- an objective analysts say is optimistic given the many headwinds it faces.
On Thursday, the ruling Communist Party convened a meeting of its top body, the Politburo, to "analyse and study the current economic situation".
"Some new situations and problems have emerged in the current running of the economy," the Xinhua news agency reported after the meeting, which was attended by Xi.
"We must view the current economic situation comprehensively, objectively and calmly, face difficulties squarely, (and) strengthen confidence," it added.
Politburo members agreed on the need to "further improve the focus and effectiveness of policy measures" aimed at lifting the economy.
They also vowed to "respond to the people's concerns" about the economic malaise.
Beijing would "adjust housing purchase restriction policies, lower interest rates on existing mortgage loans... and promote the construction of a new model for real estate development", Xinhua said.
Thursday's readout suggested that such support may be on the way, said Julian Evans-Pritchard, head of China economics at Capital Economics, in a note.
"But concrete details are lacking and so it's difficult to judge the scale of any additional fiscal support at this stage," he said.
The state media readout also suggested rate cuts could be larger than previously anticipated, said Evans-Pritchard, adding that "falling inflation and private-sector deleveraging mean that rate cuts alone won't dramatically boost domestic demand".
- Splash the cash -
Also on Thursday, the government vowed to improve care for the elderly and young and work to boost jobs, particularly among the youth.
Meanwhile, Bloomberg reported officials were considering pumping more than $140 billion into the country's large state-run banks, in the first major capital injection of its kind since the 2008 global financial crisis.
The measure -- aimed at giving the banks more room to lend to businesses -- would be implemented mainly through the issuance of "new special sovereign bonds", the report said, citing sources familiar with the matter.
The details have not yet been finalised, it added.
This week's announcements, which include key rate cuts and policies intended to encourage home purchases, have been welcomed by investors, with stocks in Shanghai and Hong Kong up more than nine percent so far this week.
But more work is needed if leaders are to achieve their five percent goal this year, analysts warned.
Recent economic data has been disappointing, with second-quarter growth coming in lower than expectations at 4.7 percent.
Youth unemployment climbed in August to 18.8 percent -- its highest level this year -- according to official figures released last week.
This week's stimulus measures represent a "shift towards a more aggressive easing stance, given the sustained weakness in domestic growth", said Chaoping Zhu, global market strategist at JP Morgan Asset Management.
"The sense of urgency may convince investors that more policy support is on its way," added Zhu.
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