TOKYO: Asian stocks on Monday were close to wiping out all their losses since China's shock currency devaluation in August, as global equities rallied after the Chinese central bank cut rates and U.S. tech giants provided upbeat earnings guidance.

MSCI's index of Asia-Pacific shares outside Japan rose 0.5 percent to hit its highest since Aug. 12, led by 1.2 percent gains in Honk Kong. Japan's Nikkei rose 1.1 percent to a two-month high.

The surprise move by China lifted risk assets that had been already boosted by Thursday's message from the European Central Bank that it stood ready to enhance quantitative easing and cut interest rates to even deeper negative levels.

"These moves by the ECB and China are raising speculation that the Bank of Japan will act later on this week as well," Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management. The BOJ will hold its next policy review on Friday.

The U.S. Federal Reserve is also widely expected to refrain from raising rates at its two-day policy meeting on Tuesday and Wednesday.

Against these backdrop, the MSCI's index of the world's share markets shot up to its highest level since Aug. 20, having risen more than 10 percent from its two-year low hit less than a month ago.

It has recovered most of the losses since Aug. 11, when China's sudden devaluation of the yuan sparked worries its economy may be in deeper trouble than many had thought.

On Wall Street, S&P 500 Index rose 1.1 percent to turn positive on the year, while the tech-heavy Nasdaq jumped 2.3 percent.

Technology shares led the way, thanks to gains in Alphabet, Amazon and Microsoft, after the three companies reported earnings results. The former two hit record highs, while Microsoft rose to a 15-year high.