Nikkei 225 climbed 2.1% to 38,337.23, S&P/ASX 200 index added 0.3% to 7,705.70, Kospi advanced 1.9% to 2,672.87, Hang Seng advanced 1.3% to 17,053.06, Shanghai Composite index was 0.2% higher at 3,026.88 and Taiex added 2.3%
Asian shares rose on Wednesday, led by a 2% gain in Japan’s Nikkei 225 after U.S. stocks rallied for a second consecutive day Tuesday, blunting the blow from what’s been a rough April.
U.S. futures gained while oil prices dropped.
Japan’s benchmark Nikkei 225 climbed 2.1% in morning trading to 38,337.23, with the yen staying at 34-year lows during the week.
Australia’s S&P/ASX 200 index added 0.3% to 7,705.70 after the release of a fifth successive quarter of decelerating inflation, with the CPI in the first quarter dropping to 3.6% from previous 4.1%.
In South Korea, the Kospi advanced 1.9% to 2,672.87, led by a 3.8% gain in heavyweight Samsung Electronics.
The Hang Seng in Hong Kong advanced 1.3% to 17,053.06, while the Hang Seng Tech Index added 2.7%. The Shanghai Composite index was 0.2% higher at 3,026.88.
Elsewhere in Asia, Taiwan’s Taiex added 2.3%.
On Tuesday, the S&P 500 jumped 1.2% to 5,070.55, pulling further out of the hole created by a six-day losing streak. The Dow Jones Industrial Average (DJIA) gained 0.7% to 38,503.69, and the Nasdaq composite climbed 1.6% to 15,696.64.
A weaker-than-expected report on U.S. business activity helped support the market, which remains in a difficult phase. The hope on Wall Street is for the economy to avoid a severe recession, but not to stay so hot that it keeps upward pressure on inflation.
The preliminary report from S&P Global released Tuesday appeared to hit that spot. Treasury yields dropped in the bond market, and stocks added to gains immediately after its release.
A string of earnings reports also dictated much of trading, highlighted by a slew of firms that topped analysts’ expectations.
GE Aerospace added 8.3% higher after it raised its profit forecast for the full year, in addition to beating expectations for first-quarter earnings.
Kimberly-Clark advanced 5.5% after it raised its earnings forecast for the full year. General Motors rose 4.4% after citing sales of pickup trucks and other higher-profit vehicles. Danaher added 7.2% after pointing to strength in its bioprocessing and molecular diagnostics businesses.
They helped overshadow an 8.9% decline for Nucor after the steelmaker fell short of forecasts for both profit and revenue.
With sceptics still calling the broad stock market too expensive, criticism would ease only if firms were to produce higher profits or if interest rates were to drop. The latter has been looking less likely.
