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Asian Shares Grow After US Stocks Post Biggest Gains in 6 Months

By Investors Hub

Asian stocks climbed on Wednesday after U.S. shares posted their biggest gain in six months overnight following strong earnings from major financial and health care companies as well as encouraging reports on the U.S. economy.

Chinese shares closed higher ahead of third-quarter GDP and September activity data due on Friday. The benchmark Shanghai Composite Index advanced 15.29 points or 0.6 percent to finish at 2,561.61. Hong Kong markets were closed for the Chung Yeung Festival.

Japanese shares rallied further to recover from last week’s sharp downturn. The Nikkei 225 Index jumped 291.88 points or 1.3 percent to 22,841.12, extending gains for the second straight session after hitting a five-week low on Monday. The broader Topix Index closed 1.5 percent higher at 1,713.87.

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Technology firms, financials and electronics makers paced the gainers. Tokyo Electron rallied 3 percent and Advantest surged up 3.5 percent, tracking sharp gains in their U.S. counterparts overnight.

Exporters Canon, Toyota Motor and Panasonic all rose over 1 percent as the yen slid from a five-week high versus the dollar on robust U.S. corporate earnings and encouraging economic data.

Heavyweight SoftBank Group gained 2.1 percent on a Wall Street Journal report that Uber Technologies could be valued at $120 billion when it goes public next year. SoftBank is currently Uber’s largest shareholder.

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Lender Mitsubishi UFJ Financial rose 1.6 percent and Sumitomo Mitsui Financial added 1.8 percent.

On other hand, Shipping major Mitsui OSK Lines plunged 7.5 percent after lowering its net profit outlook. Kawasaki Kisen nosedived 14.4 percent.

Australian stocks rose the most in over three months, in line with the overnight rally in the U.S. and European markets. The benchmark S&P/ASX 200 Index jumped 69.20 points or 1.2 percent to 5,939.10, while the broader All Ordinaries Index surged up 1.2 percent to 6,047.10.

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Banks ANZ, Commonwealth and Westpac rose between 1 percent and 1.7 percent, while healthcare stocks such as CSL Ltd and Cochlear gained 2.5 percent and 3.4 percent, respectively.

Accounting software platform Xero jumped 5.6 percent and data processing firm Computershare advanced 2.8 percent as Netflix smashed earnings estimates after the U.S. markets close

Meanwhile, mining giant BHP Billiton shed 0.7 percent after cutting its full-year copper production guidance. Rival Rio Tinto eased 0.2 percent, Fortescue Metals Group lost over 2 percent and South32 declined 0.8 percent.

Energy stocks turned in a mixed performance despite oil prices extending gains into a fourth straight session.

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Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

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