Investing.com - Shares in Asia rose on Wednesday, taking a cue from Wall Street overnight and trending cautious ahead of more details expected as Britain moves to formally start its split with the European Union.
U.K. Prime Minister Theresa May signed the official letter to the European Council President Donald Tusk to invoke Article 50 of the Lisbon Treaty. The letter once delivered to Tusk on Wednesday at 12:30 BST, will then begin the official two-year process of the U.K. leaving the bloc.
"The triggering of Article 50 is unlikely to create an immediate sea of change," said Tim Riddell, director at Westpac Institutional Bank, in a Wednesday note to clients. At stake is London's ability to remain as a financial hub and trade relations with the European bloc of nations for everything from cars to food.
The S&P/ASX 200 rose 0.79% despite damages along the northeast Australia in the wake of Cyclone Debbie that packed wind gusts stronger than 260 km per hour (160 mph).
Japan's Nikkei 225 rose 0.15% after Toshiba's U.S. subsidiary Westinghouse is ready to file for U.S. bankruptcy, in a bid to limit losses for the Japanese conglomerate. Shares of Toshiba were down 0.23% per share and more than 22% on year.
The Shanghai composite inched up 0.11% and Hong Kong's Hang Seng index advanced 0.3%.
Overnight, Wall St closed higher on Tuesday, as investors piled into U.S. equities, after consumer confidence surged to its highest level since 2000, which overshadowed concerns about President Trump’s ability to push a tax reform package through congress.
The Dow snapped an eight-day losing streak, buoyed by better than expected consumer confidence data, which lifted sentiment amid worries that the healthcare bill setback could weigh on the success of Trump’s pro-growth policies being passed.
The Consumer Board Consumer Confidence Index, hit 125.6, far above expectations of a 114 print. Consumer confidence rose to its highest level in nearly 17 years.
Finanicals and energy led the rally, as the latter benefited from a recovery in oil prices, after a severe disruption to Libyan oil supplies while bullish comments from OPEC officials lifted sentiment.
Meanwhile, investors digested a slew of comments from Federal Reserve officials on Tuesday, as Kansas City Federal Reserve President Esther George said she needs more details on the Trump administration's fiscal proposals while Fed Chair Yellen did not address monetary policy.
The Dow Jones Industrial Average closed 0.73% higher at 20,701. The S&P 500 gained 0.73% and the Nasdaq Composite closed 0.6% higher at 5875.14.