The yen lost ground to major currencies on Wednesday, while the yuan hit its strongest level in over a year, as China's aggressive stimulus package provided the latest shot in the arm for risk appetite.

The S&P 500 added 0.3% on Tuesday, Sept. 24, as a report showed a slump in consumer confidence and China unveiled an economic stimulus package.

The People's Bank of China followed its announcement of wide-ranging policy easing on Tuesday with a cut to medium-term lending rates to banks on Wednesday. Beijing's broad-based stimulus - the biggest since the pandemic - also includes steps to boost China's stock market and support for the ailing property sector.

Investors assessed Australia's inflation numbers on Wednesday, with the CPI climbing 2.7% year on year in August, in line with Reuters estimates.

China-exposed assets jumped on Tuesday after Beijing announced its biggest stimulus since the pandemic in a bid to pull the world's second-largest economy out of the deflationary funk that has shaken global currency and equity markets this year.

Emerging markets' stocks climbed to their highest since April 2022 on Tuesday after China introduced new measures to boost its sluggish economy.

The pound has hit its highest level in over two years this morning, as investors bet that the Bank of England will cut interest rates slower than the US Federal Reserve. Sterling has extended its recent rally this morning,

European shares ended higher on Tuesday, with China-exposed firms such as luxury giants and automakers at the helm of gains after China's central bank unveiled broad stimulus measures to aid its ailing economy.