Investing.com - Asian stock markets were broadly higher on Wednesday, inspired by strong overnight gains on Wall Street, as an encouraging assessment of the economy from the Federal Reserve boosted appetite for riskier assets.
During late Asian trade, Hong Kong's Hang Seng Index rose 0.3%, Australia’s ASX/200 Index jumped 0.93%, while Japan’s Nikkei 225 Index rallied 1.53%.
U.S. stocks had their best day of 2012 on Tuesday, closing at multi-year highs after the Federal Reserve said it saw signs of an improving economy and expected the unemployment rate to keep falling. The Fed also said strains in the global financial markets have eased.
Further boosting sentiment, the Fed made a surprise announcement of the results of its annual stress test for banks. JP Morgan Chase and 14 other financial institutions passed. Four, including Citigroup, failed.
In Japan, the Nikkei closed above the key 10,000 level for the first time since late July, boosted by strong gains in exporters and financial sector stocks.
The yen dropped to the lowest level since April against the U.S. dollar. A weaker yen increases the value of overseas income at Japanese companies when repatriated, boosting the outlook for export earnings.
Consumer electronics giant Sony rallied 5.15%, digital camera maker Canon jumped 3.4%, while automakers Toyota and Nissan added 2.05% and 3.8%.
Meanwhile, banking heavyweights Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group climbed 2.6% and 2.55% respectively, while investment bank Nomura Holdings tacked on 3.4%.
Japanese steelmakers also contributed to gains after Credit Suisse raised its outlook on the sector, saying the quarter ending this month should be the industry’s “low point.”
JFE Holdings climbed 6.1%, Kobe Steel added 2.95% and shares in Kyoei Steel jumped 3.4%.
Elsewhere, shares in Hong Kong gave up early gains, tracking steep losses in mainland China, as property stocks were dragged lower after Premier Wen Jiabao said there wouldn't be any rollback of measures targeted at cooling the housing sector.
Wen also warned of damage to the economy if a bubble were allowed to develop. Shares in Sino Land fell 2.05%, China Overseas Land & Investment declined 0.5%, while Evergrande Real Estate Group slumped 3.2%.
But shares in the financial sector performed strongly. Index heavyweight HSBC Holdings rose 1.05% and Hong Kong-listed shares of Bank of China added 0.6%.
Looking ahead, the outlook for European stock markets was upbeat. The EURO STOXX 50 futures pointed to a gain of 0.4%, France’s CAC 40 futures rose 0.35%, London’s FTSE 100 futures edged 0.35% higher, while Germany's DAX futures pointed to a rise of 0.4% at the open.
Later in the day, the euro zone was to publish official data on consumer price inflation, as well as data on industrial production.
The U.S. was to produce official data on the country’s current account, as well as data on import prices and crude oil stockpiles. In addition, Federal Reserve Chairman Ben Bernanke was also due to speak.
During late Asian trade, Hong Kong's Hang Seng Index rose 0.3%, Australia’s ASX/200 Index jumped 0.93%, while Japan’s Nikkei 225 Index rallied 1.53%.
U.S. stocks had their best day of 2012 on Tuesday, closing at multi-year highs after the Federal Reserve said it saw signs of an improving economy and expected the unemployment rate to keep falling. The Fed also said strains in the global financial markets have eased.
Further boosting sentiment, the Fed made a surprise announcement of the results of its annual stress test for banks. JP Morgan Chase and 14 other financial institutions passed. Four, including Citigroup, failed.
In Japan, the Nikkei closed above the key 10,000 level for the first time since late July, boosted by strong gains in exporters and financial sector stocks.
The yen dropped to the lowest level since April against the U.S. dollar. A weaker yen increases the value of overseas income at Japanese companies when repatriated, boosting the outlook for export earnings.
Consumer electronics giant Sony rallied 5.15%, digital camera maker Canon jumped 3.4%, while automakers Toyota and Nissan added 2.05% and 3.8%.
Meanwhile, banking heavyweights Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group climbed 2.6% and 2.55% respectively, while investment bank Nomura Holdings tacked on 3.4%.
Japanese steelmakers also contributed to gains after Credit Suisse raised its outlook on the sector, saying the quarter ending this month should be the industry’s “low point.”
JFE Holdings climbed 6.1%, Kobe Steel added 2.95% and shares in Kyoei Steel jumped 3.4%.
Elsewhere, shares in Hong Kong gave up early gains, tracking steep losses in mainland China, as property stocks were dragged lower after Premier Wen Jiabao said there wouldn't be any rollback of measures targeted at cooling the housing sector.
Wen also warned of damage to the economy if a bubble were allowed to develop. Shares in Sino Land fell 2.05%, China Overseas Land & Investment declined 0.5%, while Evergrande Real Estate Group slumped 3.2%.
But shares in the financial sector performed strongly. Index heavyweight HSBC Holdings rose 1.05% and Hong Kong-listed shares of Bank of China added 0.6%.
Looking ahead, the outlook for European stock markets was upbeat. The EURO STOXX 50 futures pointed to a gain of 0.4%, France’s CAC 40 futures rose 0.35%, London’s FTSE 100 futures edged 0.35% higher, while Germany's DAX futures pointed to a rise of 0.4% at the open.
Later in the day, the euro zone was to publish official data on consumer price inflation, as well as data on industrial production.
The U.S. was to produce official data on the country’s current account, as well as data on import prices and crude oil stockpiles. In addition, Federal Reserve Chairman Ben Bernanke was also due to speak.