China and Hong Kong stocks led gains in Asia-Pacific markets Thursday after the People's Bank of China said it would cut reserve requirements for the country's lenders. Property stocks also jumped on the central bank's measures that would help boost the liquidity available to developers.
The central bank announced it would reduce the amount of funds its banks are required to hold as reserves early next month in a bid to boost its struggling economy.
Reserve ratio requirements for banks will be cut by 50 basis points from Feb. 5, which will provide 1 trillion yuan ($139.8 billion) in long-term capital, according to PBOC governor Pan Gongsheng.
The People's Bank of China and the Ministry of Finance said in a joint statement late Wednesday that these new measures will be valid until the end of 2024. The move is expected to ease a lingering cash crunch for the property developers.
Hong Kong's Hang Seng index index jumped 1.8%, while China's CSI 300 closed 2% higher at 3,342.92.
The CSI property index jumped 5.2%, while Hong Kong's Hang Seng Mainland Properties index rose as much as 3.9%.
Shares of EV makers fell, with Nio down 4.7%, Li Auto down 1.6% and BYD sliding 1%. LG Display led declines in Tesla suppliers, down 3%.
Tesla warned that vehicle volume growth in 2024 "may be notably lower" than last year.
China's Shenzhen Composite index ended 2% up at 8,856.22.
South Korea's GDP grew 2.2% year on year in the fourth quarter and 0.6% compared with the previous quarter, beating expectations from a Reuters poll of 2.1% and 0.5% growth, respectively.
Shares of electric vehicle makers and suppliers of Tesla in Asia-Pacific, however, fell after the U.S. automaker warned of bleak volume growth.
Japan's Nikkei 225 closed flat at 36,236.47 and the broad based Topix ended 0.11% higher at 2,531.92, while South Korea's Kospi held flat at 2,470.34 and the small-cap Kosdaq shed 1.49% to close at 823.74.
In Australia, the S&P/ASX 200 closed 0.48% higher at 7,555.40.
Overnight in the U.S., the S&P 500 rose Wednesday as Netflix led a broader rally among technology names, pushing the broader market to new heights. Netflix shares surged more than 10% after the streamer said its total subscriber count hit an all-time high of 260.8 million.
The broad-based index eked out a gain of 0.08% to clinch a new all-time closing high. The Nasdaq Composite rose 0.36% helped by the tech rally. It was the fifth straight day of wins for both indexes.
In contrast, the Dow Jones Industrial Average fell 0.26%, to 37,806.39, dragged by Verizon and 3M a day after they reported earnings.
— CNBC's Sarah Min and Alex Harring contributed to this report