Nikkei 225 climbed 1.4 per cent, the TOPIX index jumped 1.3 per cent, S&P/ASX 200 gained 0.9 per cent, Straits Times Index added 0.5 per cent, KOSPI climbed 1.7 per cent, while Hang Seng index added 1 per cent

Asian stock markets rebounded on Wednesday after steep losses earlier this week even as renewed China-U.S. trade tensions kept sentiment fragile.

Nikkei 225 climbed 1.4 per cent on Wednesday after slumping almost 3 per cent in the previous session. The broader TOPIX index jumped 1.3 per cent.

S&P/ASX 200 gained 0.9 per cent, while Straits Times Index added 0.5 per cent.

KOSPI climbed 1.7 per cent, with tech stocks leading gains.

Futures for India’s Nifty 50 rose before market open.

Shanghai Shenzhen CSI 300 and the Shanghai Composite both traded flat on Wednesday.

Hang Seng index added 1 per cent on Tuesday after sharp losses this week.

Meanwhile, the U.S. stock market closed mixed overnight in a choppy trade, but sentiment remained upbeat with strong earnings from the country’s major banks.

U.S. stock index futures were little changed in Asia hours as of 02:50 GMT.

The rally in Asia was also affected by U.S. central bank Chair Powell’s remarks on Tuesday that the country’s economy was on firmer footing but cautioned that a notably softer labor market was emerging. He said the central bank was considering an end to its balance sheet drawdown, known as quantitative tightening.

The comments were interpreted as signaling that the bank may cut rates again later this year. U.S. Treasury yields dropped and the dollar softened following Powell’s speech, in part helping lift risk appetite across Asian markets.

This reinforces expectations for further rate cuts, potentially two more this year, with Powell indicating that the policy stance could shift to neutral as risks become more balanced, MUFG analysts said in a note.