Asia-Pacific Equities Post Broad Gains Amid Tech Rally and Ukraine Caution

Asian stock markets traded mostly higher on Wednesday, building on positive overnight momentum from Wall Street, where technology stocks led a strong rebound. The advance came despite remarks from US Federal Reserve Chair Jerome Powell suggesting the central bank may pursue more aggressive interest rate hikes.

Sentiment remained cautious, however, as the Russia-Ukraine conflict intensified and Western nations imposed additional stringent sanctions on Moscow.

Australian equities advanced modestly, with the benchmark S&P/ASX 200 hovering just below the 7,400 level. Gains in technology shares, mirroring the tech-heavy Nasdaq’s overnight performance, helped drive the index higher.

The S&P/ASX 200 rose 30.20 points, or 0.41 percent, to 7,371.20, after reaching an intraday high of 7,380.80. The broader All Ordinaries Index added 37.20 points, or 0.49 percent, to 7,657.90. Australian stocks closed significantly higher in the previous session.

Major miners traded lower, with OZ Minerals, Mineral Resources, and BHP Group each declining 1.5 percent. Rio Tinto edged down 0.5 percent, while Fortescue Metals slipped 0.1 percent.

Oil stocks were mixed. Origin Energy gained 1.5 percent and Santos added 0.3 percent, while Woodside Petroleum eased 0.2 percent and Beach Energy lost nearly 3 percent.

The technology sector posted strong gains, with WiseTech Global and Xero up more than 2 percent each. Block surged almost 9 percent, Appen rose nearly 3 percent, and Zip jumped more than 7 percent.

Among the big four banks, Commonwealth Bank, ANZ Banking, and National Australia Bank each added nearly 1 percent, while Westpac edged up 0.4 percent. ANZ Banking also gained more than 1 percent.

Gold miners traded lower, with Gold Road Resources and Newcrest Mining each falling more than 1 percent. Resolute Mining slipped nearly 3 percent, Northern Star Resources declined almost 2 percent, and Evolution Mining slid more than 2 percent.

Shares of Fisher and Paykel Healthcare dropped more than 6 percent after the company warned that rising freight costs would pressure margins and forecast weak full-year revenues.

Meanwhile, Plenti shares soared 10.5 percent after the digital lender raised its cash net profit after tax forecast for the six months ending March.

In currency markets, the Australian dollar was trading at $0.747 on Wednesday.

Japanese stocks rallied sharply, extending gains for a seventh consecutive session, with the Nikkei 225 approaching the 28,000 mark. The advance followed positive Wall Street cues and the complete lifting of COVID-19 quasi-emergency measures across 18 prefectures, leaving Japan without emergency restrictions for the first time since January 8.

Caution persisted, however, amid escalating tensions in the Russia-Ukraine conflict and new Western sanctions against Russia.

The Nikkei 225 closed the morning session at 27,947.26, up 723.15 points or 2.66 percent, after reaching an intraday high of 27,980.35. Japanese stocks closed sharply higher on Tuesday.

Market heavyweight SoftBank Group surged more than 8 percent, while Uniqlo operator Fast Retailing gained nearly 4 percent. Among automakers, Honda added more than 2 percent and Toyota rose more than 3 percent.

Technology stocks advanced, with Screen Holdings gaining more than 3 percent, Advantest adding more than 4 percent, and Tokyo Electron up more than 3 percent.

In the banking sector, Mizuho Financial and Mitsubishi UFJ Financial each gained more than 1 percent, while Sumitomo Mitsui Financial added 1.5 percent.

Major exporters traded higher, with Mitsubishi Electric, Sony, and Panasonic each adding nearly 2 percent, while Canon gained almost 1 percent.

Other notable gainers included Daiichi Sankyo, up more than 6 percent, and TDK, which surged nearly 5 percent. Keyence and Taiyo Yuden each gained more than 4 percent, while Olympus, NEC, and Japan Exchange Group added nearly 4 percent. Nissan Motor, Hitachi, and Shin-Etsu Chemical rose more than 3 percent each.

On the downside, JCG Holdings and Dai Nippon Printing each lost more than 2 percent.

In currency markets, the US dollar was trading in the upper 120-yen range on Wednesday.

Elsewhere in Asia, Hong Kong gained 1.7 percent, while China, Singapore, South Korea, Malaysia, and Taiwan rose between 0.2 and 0.9 percent each. New Zealand and Indonesia were down 1.1 and 0.1 percent, respectively.

On Wall Street, stocks posted strong gains on Tuesday, recovering from the prior session’s pullback. The major averages climbed firmly into positive territory, with the tech-heavy Nasdaq leading the advance. The Dow rose 254.47 points, or 0.7 percent, to 34,807.46; the Nasdaq surged 270.36 points, or 2 percent, to 14,108.82; and the S&P 500 jumped 50.43 points, or 1.1 percent, to 4,511.61.

Major European markets also moved higher. The UK’s FTSE 100 Index rose 0.5 percent, while the German DAX Index and French CAC 40 Index climbed 1 percent and 1.2 percent, respectively.

Crude oil futures settled lower on Tuesday, pressured by reports that European Union foreign ministers remained divided over a potential ban on Russian oil. West Texas Intermediate crude for April delivery fell $0.36, or 0.3 percent, to $111.76 a barrel on expiration day.

Source link