Asian equity markets advanced broadly on Wednesday, buoyed by positive momentum from Wall Street and reduced geopolitical tensions after Russia announced partial troop withdrawals near Ukraine. Investors seized opportunities in undervalued sectors following recent volatility linked to conflict fears.
Australia’s S&P/ASX 200 index climbed 61.10 points (0.85%) to 7,268.00, recovering from Tuesday’s decline, while the All Ordinaries Index rose 0.87% to 7,555.30. However, major miners like Rio Tinto (-0.5%) and BHP Group (-2%) lagged, whereas OZ Minerals (+2%) and Mineral Resources (+0.5%) outperformed.
Fortescue Metals fell over 2% despite a 32% drop in first-half profits, primarily due to rising costs. Meanwhile, CSL surged 7% as investors reacted to its interim dividend, even as the firm projected weaker second-half performance amid pandemic-related plasma collection challenges.
The Nikkei 225 in Japan gained 2.10% to 27,428.02, driven by gains in tech firms like Screen Holdings (+4%) and exporters such as Canon (+1%). SoftBank Group (+2%) and Honda (+3%) further fueled the rally.
Regional markets showed mixed results: New Zealand, Hong Kong, South Korea, and Taiwan rose 1.2-1.6%, while China, Malaysia, and Indonesia edged up 0.1-0.6%. Singapore declined 0.1%. The Aussie dollar traded at $0.715, and the greenback strengthened to 115 yen.
Wall Street’s major indices rebounded significantly on Tuesday, with the Nasdaq leading a 2.5% surge. European markets mirrored the optimism, as the DAX and CAC 40 jumped 2% and 1.9%, respectively. Oil prices dipped 3.6% to $92.07 a barrel amid easing supply concerns.
