Asian markets tracked a solid lead from Wall Street to rally on Wednesday, with Japanese stocks climbing amid expectations for improved earnings growth while Australian shares gained as quarterly inflation data raised hopes for another rate cut.
In Japan, the Nikkei 225 index hiked 313.81 points, or 2.3%, to 13,843.46
Hong Kong’s Hang Seng Index leaped 376.44 points, or 1.7%, to 22,183.05
Australian markets rose for their fourth straight day of advance, after data showing consumer prices rose by a weaker-than-expected 2.5% in the first quarter from the year-ago period.
Shares of Commonwealth Bank of Australia climbed 2.4% and Australia & New Zealand Banking Group added 2.2% after the data, while retailer Woolworths Ltd. gained 2.3%.
The region’s strong gains came after stocks on Wall Street ended higher, overcoming a sharp intraday fall in the wake of a rogue tweet from a hacked Associated Press account.
Shares of Apple Inc. slipped in after-hours trading as investors focused on the company’s lower quarterly margins, despite a profit that beat estimates and the iPhone maker’s decision to return an additional $50 billion U.S. to shareholders via a share-buyback program.
Apple’s component suppliers and mobile service providers in Asia traded broadly higher on Wednesday after the company’s results. Hon Hai Precision Industry Co. rose 2.5% and Largan Precision Co. added 1.4% in Taipei.
Among Apple’s mobile service providing partners, Softbank Corp. rose 4.2% in Tokyo and China Unicom Hong Kong Ltd. gained 2.7%.
Shares of SK Hynix Inc. rose 0.9% in Seoul after the chip maker swung back to a quarterly profit.
Automobile shares posted strong gains in Tokyo amid hopes that a weakened yen would boost their profitability, with Nissan Motor Co. climbing 2.3% and Mazda Motor Corp. rising 3.6%.
Subaru maker Fuji Heavy Industries Ltd. jumped 2.7% and Hino Motors Ltd. climbed 3.8% after the Nikkei newspaper reported that both firms were likely to post their best operating profits on record after the yen’s recent decline.
The rebound in Chinese equities came after an executive at Goldman Sachs Asset Management said stocks were turning attractive after a drop in valuations and as corporate profits were poised to level out.
In Hong Kong, shares of HSBC Holdings PLC rose 2.4% a day after the banking heavyweight said it will cut 1,149 jobs in Britain as part of plans to reduce costs.
In other markets;
The Shanghai CSI 300 moved forward 46.11 points, or 1.9%, to 2,495.58
In Korea, the Kospi Index improved 16.68 points, or 0.9%, to 1,935.31
In Taiwan, the Taiex Index gained 80.94 points, or 1%, to 8,023.71
The Singapore Straits Times Index advanced 38.36 points, or 1.2%, to 3,322.71
In New Zealand, the NZX 50 gained 22.48 points, or 0.5%, to 4,538.98
Australia’s ASX 200 added 86.20 points, or 1.7%, to 5,102.43
