The eyes of economists keen on Asian markets are now focusing intently on what China is going to do next after the government earlier announced fiscal stimulus measures to fire up its weakened economy. Hopes are high that the People's Bank of China (PBOC) will ease up on its monetary policies. In particular, watchers think that the PBOC would reduce the reserve requirement ratio (RRR) of banks in the near future. There is also a possibility that rate cuts will also be given to cards.

In an interview with CNBC, Senior Economist of Asia ex-Japan at Credit Agricole Dariusz Kowalczyk said that the Chinese government will still do more. "It seems that the government has come around to the view that the economy needs stimulus. The measures they have announced are small and targeted, and because of that, it can't be the end of it. They have to do more," he said.