Asian Shares Rise On Hopes Of Fed Easing

Asian shares advanced on Wednesday after U.S. stocks posted strong gains for a second consecutive session overnight on expectations that the U.S. Federal Reserve might ease off on major rate hikes, heading into 2023.

Mainland China markets remained shut for the Golden Week holiday. Indian markets were also closed for a holiday.

Hong Kong’s Hang Seng Index soared 5.9 percent to 18,087.97 as trading resumed after Tuesday’s holiday.

Japanese shares eked out modest gains as investors awaited further signs of economic health from the United States, with ADP employment data, non-farm payrolls and ISM services data due this week.

The Nikkei 225 Index rose 0.5 percent to 27,120.53, ending above the key 27,000 level for the first time in two weeks. The broader Topix closed 0.3 percent higher at 1,912.92.

Heavyweight Fast Retailing rose 0.9 percent after announcing an 11 percent year-on-year increase in sales at domestic Uniqlo stores. Likewise, footwear firm ABC-Mart rallied 3.7 percent on upbeat September numbers. Nippon Sheet Glass led losses to close 4.3 percent lower.

Seoul stocks ended on a positive note as official data showed consumer inflation in the country slowed for a second month in September.

The Kospi rose 0.3 percent to 2,215.22, extending gains for a second straight session led by tech stocks. Market bellwether Samsung Electronics gained 1.5 percent and chip giant SK Hynix jumped 4.2 percent.

Australian markets rallied, with financials leading another day of broad gains after the Reserve Bank surprised markets by delivering a smaller than expected rate hike. Encouraging retail sales and service sector data also offered some support.

The benchmark S&P ASX 200 Index climbed 1.7 percent to 6,815.70, while the broader All Ordinaries Index closed 1.8 percent higher at 7,030.90.

Link Administration shares soared 6.7 percent after the share registry firm received a $1.27 billion bid for its corporate markets and banking segments from Canada’s Dye & Durham.

New Zealand shares rose notably after the country’s central bank delivered a 50 basis point rate hike for the fifth consecutive meeting and reiterated its resolve to bring inflation back down to 2 percent, suggesting that fighting inflation is still a priority for many central banks. The benchmark S&P NZX-50 Index gained 0.8 percent to finish at 11,180.01.

U.S. stocks rallied for a second day running on Tuesday as Treasury yields cooled further on data showing a drop in job openings in the country.

The Dow climbed 2.8 percent, the S&P 500 jumped 3.1 percent and the tech-heavy Nasdaq Composite surged 3.3 percent.

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