Most Asian markets advanced on Wednesday, following gains in U.S. equities overnight after Federal Reserve chair Janet Yellen struck a dovish tone in a scheduled speech but Japan's shares retreated as the yen strengthened.
The Nikkei 225 in Tokyo swooned 224.57 points, or 1.3%, to 16,878.96
In Hong Kong, the Hang Seng Index vaulted 437.09 points, or 2.2%, to 20.803.39
The weaker U.S. dollar helped spur the Japanese yen higher, with thedollar/yen pair trading at 112.10 in late afternoon, compared with levels above 113 earlier in the week.
Major exporters ended mostly lower, with Toyota off 2.5%, Nissan off 3.7% and Honda down 3.6% A stronger yen is a negative for exporters as it lowers the value of their repatriated profits and makes their products less competitive overseas.
Sharp shares climbed 3.9% after Japan's Yomiuri newspaper reported that Foxconn, which will be acquiring the Japanese company, would be overhauling management, including replacing the CEO.
Before market open, data showed Japan's industrial output fell 6.2% on-month in February, compared with a expectations in an economists’ poll for a 6% decline, following a 3.7% gain in January.
The Australian dollar also strengthened after Yellen's remarks, fetching $0.7684 after the ASX 200 closed Wednesday, compared with levels around $0.7530 on Tuesday prior to the speech.
Big Australian banks suffered, as shares of ANZ were down 0.4%, Commonwealth Bank of Australia ended up 0.3%, shares of NAB were nearly flat while Westpac tailed off 0.1%.
Elsewhere, Virgin Australia shares tumbled 9.3% amid reports, the airline's largest stakeholder, Air New Zealand, is considering selling its 25.9% stake. Air New Zealand shares added 0.4%
Energy plays were mixed around the region, with shares of Woodside Petroleum off 2.6%, Japan's Inpex down 2.9% and Fuji Oiloff by 0.4%
Tuesday, Yellen told the Economic Club of New York that the U.S. Federal Reserve should proceed with caution in adjusting policy, acknowledging that economic and financial conditions are in some respects less favourable now than in December.
She added that, with a funds rate at zero and increased uncertainty, the best policy is greater gradualism.
CHINA
In Shanghai, the CSI 300 rocketed 80.87 points, or 2.6%, to 3,216.28
Mainland Chinese energy plays were mostly higher, with Sinopec adding 8.2% and China Petroleum up by 4.2%
The Chinese yuan also strengthened against the U.S. dollar, with the dollar/yuan pair trading down 0.5% at 6.4763 in the afternoon local time. Before the market open, the People's Bank of China set the yuan mid-point fix at 6.4841, compared with the previous close of 6.5065.
In other markets;
In Korea, the Kospi index improved 7.23 points, or 0.4%, to 2,002.14
In Taiwan, the Taiex Index hiked 119.69 points, or 1.4%, to 8,737.04
In Singapore, the Straits Times Index gained 53.7 points, or 1.9%, to 2,872.78
In Australia, the ASX 200 restored 5.75 points, or 0.1%, to 5,010.27
New Zealand’s NZX 50 took on 37.83 points, or 0.6%, to 6,714.17
