• Asian stocks are a sea of green, the Shanghai Composite is up 1 percent.
• China stimulus talks overshadow dismal PMI reading.
• Brexit optimism likely boosting risk appetite.

Asians stocks are solidly bid Thursday as China's leadership signaled that further stimulus is being planned to counter the economic slowdown.

At press time, the Shanghai Composite index is reporting a 1.2 percent gain. Stocks in Australia, New Zealand, and South Korea have also added roughly 1 percent each.  Japan's Nikkei, however, is down 0.47 percent at press time, possibly due to a pullback in the USD/JPY from yesterday's high of 113.38 to 112.72.

A Politburo meeting chaired by China's President Xi Jinping yesterday concluded that downward pressure on the economy is increasing and the government needs to take timely steps to counter it.

However, the world's second-largest economy has little room to come up with big bang stimulus as it is already battling the negative impact of the debt-financed stimulus of the past.

Hence, equity markets need more catalyst for a sustained rally. Indeed, Brexit optimism might keep stocks better bid for a few days.