SINGAPORE – Shares in the Asia-Pacific rose sharply on Wednesday after US stocks rallied overnight.
Korea Kospi up 0.98% and Kosdaq 1.33% higher.
In Australia, S&P / ASX 200 increased 1.76%.
Reserve Bank of Australia Governor Philip Lowe on Wednesday said June quarter inflation due next week would show a further step forward and that a path back to 2% to 3% inflation was needed. %.
Prices rose 5.1% in the March quarter. In his speech, Lowe also said the nominal neutral rate is at least 2.5%, while the current rate is 1.35%.
Markets in mainland China edged higher. The Shanghai component increased by 0.71% and the Shenzhen component increased by 0.92%.
China left its 1-year and 5-year lending rates unchanged at 3.7% and 4.45% on Wednesday.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1.3%.
US stocks rallied on Tuesday following strong earnings reports.
The Dow Jones Industrial Average rose 754.44 points, or 2.43%, to 31,827.05. The S&P 500 rose 2.76% to 3,936.69 and the Nasdaq Composite added 3.11% to 11,713.15.
Besides the positive lead from Wall Street, there were also reports that Russia and Ukraine are about to reach an agreement to end the blockade of grain exports, and that Nord Stream 1 is likely to restart gas exports on schedule once maintenance is completed.
“There is still a lot of uncertainty about whether they will actually materialize, [but] Tai Hui, director of global market strategy for APAC at JPMorgan Asset Management, told CNBC in a phone call today.
That said, it could be a short-term bounce in the market as uncertainties over the Fed and corporate earnings persist, he said.
In company news, Japanese carmaker Toyota said its August production will be around 700,000 units, lower than the previously announced figure of 850,000 units, due to part shortages related to Covid disruptions.
Toyota shares were 0.67% higher on Wednesday.
The US Dollar Indextrack the greenback against a basket of other silver coins, at 106.602, after a sharp drop.
Bitcoin continues to rise, reaching above $23,000 at $23,417.87 by 10.26 p.m. ET Tuesday.