The government has fired up investors by encouraging banks to lend more to buyers of stocks and real estate, but officials refrained on Tuesday from promising more stimulus.

Gaining on them is economic reality that has many wondering if the more than 30% surge in equities from a September low is overdone. The problem is an underlying economy facing intensifying headwinds. And one failing to keep pace with the sudden surge in investor optimism toward China.

Investors of Chinese stocks are in for a rollercoaster ride. Onshore bourses staged a weaker-than-expected rally following a week-long holiday while shares in Hong Kong plunged. True, valuations are cheap and funds remain underweight.

Asian shares have advanced after a surprisingly strong U.S. jobs report raised optimism about the economy, sparking a rally on Wall Street

European shares have opened lower after Asian shares advanced following a surprisingly strong U.S. jobs report that raised optimism about the economy.