(Bloomberg) — Asian equities rallied after stocks and bonds and commodities all gained in the US as the Federal Reserve cut interest rates.

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Australian, South Korean and Chinese shares all advanced, supporting a second day of gains for a region-wide equity gauge. That was after the S&P 500 rose 0.7% and the Nasdaq 100 climbed 1.5%, both setting fresh peaks. Treasuries ticked lower in Asia while US equity futures were little changed.

Investors are shifting focus from the Fed to China, where lawmakers are expected to approve a fiscal package worth trillions of yuan, potentially offsetting the impact of possible US trade tariffs under Donald Trump.

Such measures may include support for local government debt and consumer spending, according to Michelle Lam, greater China economist for Societe Generale. Any new policies must be balanced against the prospect of potential tariffs, she said, noting that the 60% levies mooted by Trump may fail to emerge.

“We have so much uncertainty coming from the US tariffs,” Lam said. “We might see some smaller increase in tariffs of around 15% to 20% and that is more reasonable” for the Chinese economy to absorb, she said.

Thursday’s cross-asset rally was helped along by comments from Fed Chair Jerome Powell who pointed to the strength of the US economy and said he doesn’t rule “out or in” a December rate cut. Powell added the election will have no effect on policy in the near term, and said he would not step aside if asked by Trump.

“Powell & Co. reminded investors about the solid economic footing the US continues to stand on,” said Bret Kenwell at eToro. “Powell would not tip his hand on whether the Fed would likely cut rates in December, which shouldn’t surprise investors. However, the Fed appears more comfortable with the labor market and the current US economic backdrop than they did a few months ago.”

Elsewhere in Asia, Nissan Motor’s shares fell as much as 10% in Tokyo, touching their lowest since October 2020, after the automaker said it will dismiss 9,000 workers and cut a fifth of its manufacturing capacity after net income plummeted in the first half.

Local Chinese banks are joining more higher-yielding offshore loans of mainland firms as rates fall at home amid monetary easing measures. South Korea said it will bolster its monitoring of financial markets and respond “actively” to ease any excessive volatility.

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