Chinese property shares rally after rate cut

SHANGHAI (reuters) Shares of Chinese property developer China Overseas jump 12 per cent after China cuts interest rates, making it the top performer on benchmark Hang Seng Index.

KWG Property surged 11 per cent, Shimao Property and Country Garden rose more than 9 per cent, R&F Properties and Agile Property rally more than 8 per cent.

The central bank unexpectedly cut rates late on Friday, stepping up efforts to support small and medium-sized enterprises (SMEs) which are struggling to repay loans and access credit, as the economy slides to its slowest growth in nearly a quarter of a century.

Before Monday's's impressive 3.3 per cent jump, the property index had fallen nearly 9 per cent since early September.

The CSI300 Index of the largest companies listed in Shanghai and Shenzhen opened up 1.2 per cent at its highlest level since June 2013, while the Shanghai Composite Index opened up 0.8 per cent. Stocks in Hong Kong were also up 1.9 per cent.

Tokyo's market was closed for a holiday on Monday, but MSCI's broadest index of Asia-Pacific shares outside Japan jumped 1.3 per cent - its biggest daily gain in a month. Australia's main index climbed 1 per cent.