Asian Shares continue to rally higher

Investors are slowly acquiring more stocks in the Asian market, driving most of the index to a two-month high value. Investors are slowly getting into the market in accordance with the announcement made by the People's Bank of China that it will lower the benchmark interest rate by 25 basis point.

The move was done as the government of China is slowly trying to stimulate the country's economy as reported by CNBC. According to an analyst from IG, Evan Lucas estimated that lots of money will be poured by the government into the market.

Lucas said that "The estimated cash released from these policy changes is 600 to 700 billion yuan in liquidity (about $93.75 to $109.3 billion). Considering the inflation and industrial production [data] over the past quarter, this should be no surprise. In fact, the surprise is that it's taken this long for the PBoC to pull the trigger."

Bloomberg reported that the Shanghai Composite Index climbed by 0.5 percent, Hang Seng China Enterprise Index climbed 0.1 percent even though the Hang Seng Index dropped by 0.2 percent. Japan's Nikkei 225 on the other hand, increased by 1.3 percent, South Korea's Kospi index climbed by 0.3 percent and even the Australia's S&P ASX 200 also climbed by 0.4 percent according to CityWire.

Besides that, China government also announced that the lending rate was cut to 4.35 percent and the one-year deposit rate will also be sliced to 1.5 percent in an effort to increase manufacturing activity in China.

The government is also expected to announce a five-year plan for the Chinese economy starting from 2016 to 2020. The plan will be revealed after the fifth plenary session in Beijing. The plan is expected to leap the country's economy to a new level as the world economy is slowly healing.

The move by the government of China is welcomed well by all investors including the Goldman Sachs Group Inc. According to the firm, the easing means that billions of yuan will be released into the market helping to make sure that the borrowing cost will be kept at a low level. The firm also predicted that the Chinese authority might lower the reserve-requirement ratios by another 50 point before the end of 2015.

Along with the good news, the Chinese economy is expected to get another boost with the new IPO offered by China Reinsurance Company which saw its IPO managed to raise $2 billion in the first day. The offering makes the company become the second-largest offering in the city for 2015.