Overnight trade saw a rise in most Asian stocks, with Chinese markets leading advances due to rumours of more stimulus measures from Beijing. Australian markets, however, reduced their losses following the Reserve Bank's decision to hold interest rates constant.

While Wall Street's modest overnight advances provided some good signs for regional markets, U.S. equities are still close to reaching all-time highs. However, Wall Street futures fell during Asian trading, indicating that the current surge could be coming to an end.

The majority of Asian markets were enjoying substantial weekly gains as investors celebrated the Federal Reserve's massive interest rate decrease. This week's focus is on more Fed signals and the US economy.

Hong Kong's Hang Seng index was the top performer in Asia, rising more than 3%, while China's CSI 300 and Shanghai Composite indices also increased by more than 2%.

Several planned initiatives to boost economic development were announced by Chinese officials. The People's Bank is expected to reduce bank reserve requirements by 50 basis points in order to increase liquidity.

The government said that it would lower mortgage rates on current loans in order to help the struggling real estate industry. According to Bloomberg, the government intended to provide local stocks with liquidity support of at least 500 billion yuan ($70.8 billion).

The actions on Tuesday follow the PBOC's reduction of the short-term repo rate on Monday in an effort to increase liquidity. The actions are directly intended to support economic development, as the Chinese economy grapples with ongoing deflation and a protracted slump in the real estate market.

Japan's services sector increased faster than anticipated in September, according to purchasing managers index data, which caused the country's Nikkei 225 index to rise 0.8% and the TOPIX to gain 0.5%.

However, the level of manufacturing activity in Japan decreased for a third straight month.

Australia's ASX 200 fell 0.2%, trailing its Asian counterparts, but it did pare some losses following the RBA's anticipated hold on interest rates.

The Reserve Bank of Australia stated that it was "not ruling out" taking any action to lessen pricing pressures since inflation was still too high. However, the central bank gave no clear indications on how rates may change in the upcoming months.

Nevertheless, economists do not anticipate any softening measures until at least the first quarter of 2025, if not later, with the RBA projecting that inflation will only sustainably fall within its target range by 2026.

The monthly consumer price index inflation data is expected to provide more insights into the Australian economy on Wednesday.

(Sources: investing.com, reuters.com, bloomberg.com)