Stocks and currencies across Asia jumped on Wednesday, buoyed by a surprise rate increase in Turkey that joins similar moves in India and Brazil as developing countries seek to attract cash and restore confidence in their markets.
Japan’s Nikkei 225 index spiked 403.75 points, or 2.7%, to 15,383.91
Hong Kong’s Hang Seng Index eased 180.97 points, or 0.8%, to 22,141.61
Sharp falls in Turkey’s lira and Argentina’s peso spooked investors last week, adding to rising concerns over weaker-than-expected manufacturing data from China and prompting a global selloff that dragged Asian markets lower.
The falls prompted Turkey’s central bank to aggressively raise its overnight lending rate to 12% from 7.75% late Tuesday, surprising traders who swiftly bought back into the currency, pushing it higher and ending two weeks of uninterrupted declines.
The yen weakened 0.1% to ¥103.26 against the U.S. dollar, aiding gains in Japanese stocks.
In corporate news, Atlas Iron jumped 7.3% higher in Sydney after the iron-ore miner lifted its expectations for annual shipments from its operations. The mining company said it now expects to ship between 10.2 million and 10.7 million tons of iron ore in the year through June.
In Hong Kong, tycoon Li Ka-shing’s HK Electric Investments fell as much as 4% in early trade on its debut and was last at 5.29 Hong Kong dollars (68 U.S. cents), 2.9% lower than its initial public offering price. The business trust is struggling to drum up interest from investors, who are concerned that rising global interest rates will hit returns from such trusts.
CHINA
Shanghai’s CSI 300 index eked higher 7.93 points, or 0.4%, to 2,227.78.
Chinese technology giant Tencent Holdings was among Hong Kong’s strongest performers, adding 4.6% after heavy losses last week, while Lenovo Group added 5.7% after the company announced Tuesday that it would change its structure to create four business groups to diversify into new markets.
In other markets;
Markets in Taiwan for shuttered for a holiday
Korea’s Kospi index gained 24.22 points, or 1.3%, to 1,941.15
The Singapore Straits Times Index subtracted 14.48 points, or 0.5%, to 3,047.93
In New Zealand, the NZX 50 was positive 34.28 points, or 0.7%, to 4,882.72
In Australia, the S&P/ASX 200 move forward 53.90 points, or 1%, to 5,229.01
