Investing.com - Asian stock markets rallied sharply on Wednesday, with shares in Japan rising to the highest level since June 2008 as the yen continued its slide towards the key JPY100-level, boosting the outlook for export earnings.
Softer-than-expected inflation data sparked a rally in Australia, as it kept hopes alive for an interest rate cut by the Reserve Bank of Australia.
During late Asian trade, Hong Kong's Hang Seng Index rose 1.6%, Australia’s ASX/200 Index ended up 1.6%, while Japan’s Nikkei 225 Index rallied 2.3%.
Asian technology firms were in demand after Apple reported stronger than expected earnings after Tuesday’s closing bell on Wall Street.
In Tokyo, the Nikkei rallied sharply to end close to a five-year high, as the yen weakened against the U.S. dollar. The greenback re-approached four-year highs against the yen, with USD/JPY hitting session highs of 99.75, within sight of the key JPY100-level.
A weaker yen boosts the value of overseas income at Japanese companies when repatriated.
Automaker Mitsubishi Motors saw shares surge 20% after raising its group net profit forecast for the year ending March 2013, Kyodo News reported.
Other shares in the sector were higher on the news, with Mazda and Honda climbing 3.6% and 2% respectively, while Toyota added 2% as well.
Meanwhile, in Australia, the benchmark ASX/200 Index ended at a five-week high after official data showed that consumer price inflation rose 0.4% in the first quarter, below expectations for a 0.7% increase.
The weaker-than-expected inflation data fuelled speculation the RBA could cut rates in the near-term.
The big four banks all rose, with Australia and New Zealand Banking Group gaining the most, up 2.5%. National Australia Bank and Westpac Banking Group added 2% and 2.3% apiece. While Commonwealth Bank of Australia climbed 2.1%.
Elsewhere, in Hong Kong, the Hang Seng recovered from the previous day’s losses, with financial sector stocks leading gains.
China Construction Bank saw shares rise 2.1%, Bank of China Hong Kong shares added 2%, while China’s largest lender Industrial and Commercial Bank of China tacked on 1.4%.
Index heavyweight HSBC Holdings advanced 2.3%. Shares of HSBC command a 15% weighting on the Hong Kong benchmark, making it the single largest constituent on the index.
Looking ahead, European stock market futures pointed to a steady open.
The EURO STOXX 50 futures pointed to a loss of 0.1% at the open, France’s CAC 40 futures added 0.1%, London’s FTSE 100 futures eased up 0.1%, while Germany's DAX futures pointed to a flat open.
The euro zone was to release the Ifo index of German business climate later Wednesday, while the U.S. was to produce government data on durable goods orders.
Softer-than-expected inflation data sparked a rally in Australia, as it kept hopes alive for an interest rate cut by the Reserve Bank of Australia.
During late Asian trade, Hong Kong's Hang Seng Index rose 1.6%, Australia’s ASX/200 Index ended up 1.6%, while Japan’s Nikkei 225 Index rallied 2.3%.
Asian technology firms were in demand after Apple reported stronger than expected earnings after Tuesday’s closing bell on Wall Street.
In Tokyo, the Nikkei rallied sharply to end close to a five-year high, as the yen weakened against the U.S. dollar. The greenback re-approached four-year highs against the yen, with USD/JPY hitting session highs of 99.75, within sight of the key JPY100-level.
A weaker yen boosts the value of overseas income at Japanese companies when repatriated.
Automaker Mitsubishi Motors saw shares surge 20% after raising its group net profit forecast for the year ending March 2013, Kyodo News reported.
Other shares in the sector were higher on the news, with Mazda and Honda climbing 3.6% and 2% respectively, while Toyota added 2% as well.
Meanwhile, in Australia, the benchmark ASX/200 Index ended at a five-week high after official data showed that consumer price inflation rose 0.4% in the first quarter, below expectations for a 0.7% increase.
The weaker-than-expected inflation data fuelled speculation the RBA could cut rates in the near-term.
The big four banks all rose, with Australia and New Zealand Banking Group gaining the most, up 2.5%. National Australia Bank and Westpac Banking Group added 2% and 2.3% apiece. While Commonwealth Bank of Australia climbed 2.1%.
Elsewhere, in Hong Kong, the Hang Seng recovered from the previous day’s losses, with financial sector stocks leading gains.
China Construction Bank saw shares rise 2.1%, Bank of China Hong Kong shares added 2%, while China’s largest lender Industrial and Commercial Bank of China tacked on 1.4%.
Index heavyweight HSBC Holdings advanced 2.3%. Shares of HSBC command a 15% weighting on the Hong Kong benchmark, making it the single largest constituent on the index.
Looking ahead, European stock market futures pointed to a steady open.
The EURO STOXX 50 futures pointed to a loss of 0.1% at the open, France’s CAC 40 futures added 0.1%, London’s FTSE 100 futures eased up 0.1%, while Germany's DAX futures pointed to a flat open.
The euro zone was to release the Ifo index of German business climate later Wednesday, while the U.S. was to produce government data on durable goods orders.