In addition, the People's Bank of China cut its reserve requirement ratio for large banks for the first time since December 2008, following a modest easing for small rural banks last month.

WSJ: Central Banks Propel Asia Markets

Expectations of more favorable monetary policies, including two cuts in banks' reserve requirement ratio in the past three months, are creating isolated pockets of optimism, though analysts said Beijing would be quick to put a damper on any signs of a price rebound.

WSJ: China Housing Prices Fall Again