China's central bank rate cut on Tuesday is among measures intended to rally dwindling growth as the world's second-largest economy battles a prolonged property-sector crisis and a global slowdown.
The People's Bank of China said it was lowering the five-year loan prime rate, used to price mortgages, from 4.2 to 3.95 percent -- the largest reduction since the key rate was revamped in 2019.
Hong Kong climbed 3.0 percent in the morning session while Shanghai was up 2.3 percent.
Analysts said markets were likely having a delayed reaction to China's cut.
"The strong inflow into the onshore market via the stock connect this morning is quite surprising," Dickie Wong, executive director of research at Kingston Securities Ltd, told Bloomberg.
"I think investors are reacting to the bigger-than-expected 5 year LPR rate cut after they have had some time to react and think about the recent increased measure to support the property market."
The picture was mixed elsewhere in Asia as investors await key US tech earnings with heavyweight Nvidia reporting later Wednesday and the Fed also releasing policy meeting minutes which will be parsed for clues on the outlook for rates.
Sydney, Seoul, Taipei, Jakarta and Kuala Lumpur were all down.
Japanese stocks were also lower as chip-linked shares dipped after Nvidia's slump ahead of its earnings report.
Recent losses in Tokyo have pushed the benchmark Nikkei 225 further from hitting its highest-ever close of 38,915.87, reached in 1989.
But Bloomberg reported "macro and stock hedge funds are betting on Japan this year", predicting the Bank of Japan will shift its nearly decade-long policy of negative rates.
US stocks closed lower Tuesday, with the tech-rich Nasdaq down nearly one percent ahead of chip giant Nvidia's highly anticipated results, with traders hoping it can meet high expectations driven by the AI sector and the firm's strong growth.
"The company's results have become the biggest of the reporting period, acting as both a macroeconomic barometer and the proverbial canary in the coal mine for the artificial intelligence boom," Kyle Rodda, senior market analyst at Capital.Com Inc, told Bloomberg.
With its huge valuation, "the bar for an upside surprise is set high," he added.
Nvidia was down about 4 percent on Tuesday, but its shares are still well up since the start of the year, with enthusiasm for AI-related firms having sent its stock price surging.
US and European equities have repeatedly set record highs in recent months on expectations of interest rate cuts and blockbuster earnings by tech firms, especially those working in AI.
"In our view, this is the market event to watch this week," said Anthony Saglimbene of Ameriprise.
"While one company doesn't usually make or break a market, the growing influence of Nvidia on the overall bullish stock narrative, key tech companies, and broader indexes warrants close attention."
Key figures around 0530 GMT
Tokyo - Nikkei 225: DOWN 0.2 percent at 38,278.15
Hong Kong - Hang Seng Index: UP 3.0 percent at 16,735.92 (break)
Shanghai - Composite: UP 2.2 percent at 2,987.13
Euro/dollar: UP at $1.0813 from $1.0811 on Tuesday
Dollar/yen: FLAT at 150.00 yen
Pound/dollar: DOWN at $1.2631 from $1.2648
Euro/pound: DOWN at 85.61 pence from 85.63 pence
West Texas Intermediate: UP 0.3 percent at $77.29 per barrel
Brent North Sea Crude: UP 0.4 percent at $82.64 per barrel
New York - Dow: DOWN 0.2 percent at 38,563.80 (close)
London - FTSE 100: DOWN 0.1 percent at 7,719.21 (close)
-- Bloomberg News contributed to this story --
