Asian shares surged on Wednesday, following Wall Street’s rally, with Tokyo’s Nikkei 225 index leading the charge with a 2.4% gain. The semiconductor sector drove the market higher, with Renesas Electronics Corp. and Tokyo Electronic posting significant gains.
In Japan, the Nikkei 225 closed at 38,460.08, its highest level in a month, as investors awaited the central bank and Finance Ministry’s response to the yen’s prolonged weakness. The yen has been trading at its lowest level in 34 years, prompting market participants to closely monitor the upcoming policy meeting.
Meanwhile, shares in Greater China also saw gains, with the Hang Seng in Hong Kong rising 2% and the Hang Seng Tech Index gaining 3.1%. Chinese artificial intelligence company Sensetime Group’s shares surged 31.2% after releasing its latest AI model.
In South Korea, the Kospi added 1.9%, led by a 3.4% gain in Samsung Electronics. Australia’s S&P/ASX 200 index rose 0.1% following a deceleration in inflation.
On Wall Street, the S&P 500 climbed 1.2%, the Dow Jones Industrial Average rose 0.7%, and the Nasdaq composite jumped 1.6%. A weaker-than-expected report on U.S. business activity supported the market, with hopes for the economy to avoid a severe recession while keeping inflation in check.
Earnings reports from companies like GE Aerospace, Kimberly-Clark, and General Motors also influenced trading, overshadowing Nucor’s disappointing results. The Federal Reserve’s indication of potentially keeping interest rates high dampened hopes for rate cuts, impacting market sentiment.
Overall, the global market outlook remains positive, with investors closely monitoring economic indicators and corporate earnings for further direction.