Asian investors welcome Chinese interest rate cut

<p>Asian markets opened strongly on Monday following China’s decision to cut its interest rate.</p>

China's decision to cut its interest rate has sparked a surge in Asian shares as investors welcomed the move.

The People's Bank of China announced on Friday (November 21st) that its one year deposit rate would be cut from three per cent to 2.75 per cent in a bid to revive its economy.

This move has spread confidence around the markets and, combined with European Central Bank president Mario Draghi stating he would "step up pressure" to stimulate eurozone economy, it has reinvigorated investors.

Asian markets closed strongly on the back of the news with the Hang Seng and Shanghai Composite making gains of two per cent and 1.85 per cent respectively.

The positive feeling was felt in Australia as well where the S&P/ASX 200 index closed up 57.60 points (1.1 per cent) at 5,361.8. It represented the index's biggest percentage gain since October 22nd.

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