China shares jump as Fed hints at rate cut

Stocks in Asia were higher on Thursday after the US Federal Reserve left interest rates unchanged overnight but opened the door to rate cuts on the horizon, reports CNBC.

Mainland Chinese shares surged on the day, with the Shanghai composite adding 2.38 per cent to about 2,987.12 and the Shenzhen component 2.34 per cent higher to 9,134.96, while the Shenzhen composite gained 1.954 per cent to 1,556.60.

Hong Kong's Hang Seng index rose 1.1 per cent as shares of Chinese tech behemoth Tencent jumped 1.56 per cent.

In Japan, the Nikkei 225 gained 0.6 per cent to close at 21,462.86, with shares of index heavyweight Softbank Group soaring 2.59 per cent, while the Topix advanced 0.3 per cent to end its trading day at 1,559.90. The moves in Tokyo came as the Bank of Japan kept interest rates unchanged, emphasizing global risks were rising over issues such as the ongoing trade tensions.

"Downside risks regarding overseas economies are big, so we must carefully watch how they affect Japan's corporate and household sentiment," the Japanese central banks said in a statement announcing the policy decision.