Asian stocks posted strong gains on Tuesday as bargain hunting emerged at lower levels after a recent sell-off. Trading was quiet in the absence of any cues from Wall Street.
U.S. markets, which were closed on Monday for a holiday, looked set for a higher open later in the day, with the Dow, S&P and Nasdaq futures all rising over 1 percent.
Chinese shares fluctuated before ending slightly lower, with the benchmark Shanghai Composite closing down 0.3 percent at 3,306.72. Hong Kong’s Hang Seng Index jumped 1.9 percent to 21,559.59, with tech shares leading the surge.
Japanese shares bounced back from a three-month low as investors scooped up beaten-down cyclical and tech shares. The Nikkei 225 Index rallied 1.8 percent to 26,246.31, while the broader Topix closed 2.1 percent higher at 1,856.20.
Advantest, Tokyo Electron, ANA Holdings, Japan Airlines and SoftBank Group climbed 2-3 percent. Automakers Honda, Toyota and Nissan rose 1-3 percent as the yen remained confined in a range after hitting its lowest level in more than two decades.
Australian markets rose sharply after Reserve Bank of Australia Governor Philip Lowe said inflation is rising, but he doesn’t see a recession on the horizon. He also indicated that interest rates are likely to rise by 50 basis points at most in July.
The benchmark S&P/ASX 200 Index gained 1.4 percent to close at 6,523.80, while the broader All Ordinaries Index ended 1.4 percent higher at 6,700.80.
The big four banks rose between 2.4 percent and 3.8 percent, while energy stocks such as Woodside Petroleum and Origin Energy jumped 3-4 percent.
Global miner BHP advanced 1.7 percent after the Queensland government introduced new upper tiers to its coal royalty regime.
Across the Tasman Sea, New Zealand’s benchmark S&P/NZX 50 Index rose 1.1 percent to 10,701.59.
Seoul stocks rebounded from a 19-month low hit in the previous session. The Kospi ended a choppy session 0.8 percent higher at 2,408.93, led by automakers and internet portal giants. Hyundai Motor, Kia Corp and Naver surged 1-2 percent.
Earlier in the day, Bank of Korea Governor Rhee Chang-yong voiced concerns over risks for a further build-up in inflation and hinted at larger-than-usual interest-rate hikes.
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