China cut its benchmark lending rate by 20 basis points to 3.85% on expected lines and said it would roll out additional policies to prevent short-term economic shocks from becoming long-term stagnation trends.
Data on Friday showed that the world's second largest economy shrank 6.8% in the first quarter from a year earlier, its first contraction since at least 1992, due to the tough measures put in place to contain the outbreak.
"We expect further rate declines in the coming months...As employment conditions remain weak and external demand is being held back by lockdowns elsewhere in the world, we think the People's Bank of China will take further steps to prop up activity," analysts at Capital Economics said in a note.
Malaysian stocks were the best performers, rising as much as 1.54% to their highest since March 12.
Malaysia Airports Holdings climbed as much as 7.8% to hit a five-week peak, with Genting on track for its best session this month.
Singapore's Straits Times Index edged 0.5% higher, buoyed by telecommunications and oil stocks.
Singapore Telecommunications climbed as much as 1.5%, while Keppel Corp gained over 1%.
Thai stocks rose as much as 0.88%, helped by Electronics Industry 33.3% jump and Thai-German Products 25% leap.
Philippines index bucked the trend, tumbling as much as 1.5% due to declines in financials and telecom stocks.
Globe Telecom fell as much as 3.05%, while BDO Unibank shed over 1%.
By Nikhil Subba
