TOKYO (Reuters) - Asian stocks gained on Tuesday, led by Chinese shares after Beijing eased financing rules to boost local government spending on public works, and bolstered by investor relief following a U.S. decision to hold off import tariffs on Mexico.
Hopes that U.S. interest rates will be cut as early as next week have also provided broader support.
In early European trade, the pan-region Euro Stoxx 50 futures were up 0.06%, German DAX futures gained 0.04% and FTSE futures added 0.14%.
MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.8%.
The Shanghai Composite Index climbed 2% after China said on Monday that it would allow local governments to use proceeds from special bonds as capital for major investment projects in a bid to support the slowing economy.
Australian stocks rose 1.5%, South Korea’s KOSPI added 0.55% and Japan’s Nikkei edged up 0.3%.
U.S. stocks extended their recent climb on Monday, with the Dow rising for the sixth trading day.