China stocks surged on Tuesday on Beijing's new promises of rate cuts and a boost to consumption, while global stocks were wobbly ahead of a crucial US inflation reading.

Chinese officials have ramped up stimulus announcements since late September, including several interest rate cuts, looser property purchase rules, and liquidity support for stock markets.

Consumer inflation fell to a five-month low in November and missed expectations, climbing 0.2% from a year ago, while producer price index declined for the 26th month, government data showed.

The world’s second largest economy is still grappling with sluggish domestic demand. However, other parts of China’s economy have shown some signs of recovery with strong growth in retail sales in October.

The strength in Chinese bonds suggests some investors remain cautious. Long-term sovereign bond yields smashed record low this week, sitting below Japan’s for the very first time.

A full economic recovery hinges on the magnitude and execution of future fiscal policy, according to economists. The volatility of Chinese asset prices will likely remain elevated given potential tariffs on the way.

The A50 index has formed a double-top pattern, so its rally could be short-lived. The first support is seen at 13,300 if the decline resumes as expected.

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