CANBERA (dpa-AFX) - Asian stocks posted strong gains on Wednesday amid optimism about an economic recovery and on hopes of more stimulus measures to counter fallout from the coronavirus.
Chinese shares gave up early gains to end on a flat note as Sino-U.S. tensions offset data pointing to recovery in the country's services sector.
The benchmark Shanghai Composite index inched up 1.97 points to 2,923.37, while Hong Kong's Hang Seng index ended up 1.37 percent at 24,325.62.
China's service sector expanded for the first time in four months in May amid an easing of measures implemented to curb the spread of coronavirus, survey results from IHS Markit showed.
The services Purchasing Managers' Index advanced to 55.0 in May from 44.4 in April, signaling a recovery in the sector. Moreover, the pace of expansion was the steepest since October 2010.
Japanese shares hit over three-month high, as a rapidly weakening yen helped lift automakers. Investors also cheered data showing that services sector activity in Japan contracted at a slower rate in May.
The Nikkei average climbed 288.15 points, or 1.29 percent, to 22,613.76, its highest closing level since Feb 21. The broader Topix index closed 0.72 percent higher at 1,599.08.
Subaru, Nissan Motor and Mazda Motor jumped 6-9 percent as the yen hit a two-month low against the dollar and a four-and-a-half month low against the euro. Honda Motor advanced 2.6 percent and Toyota Motor added 2.1 percent.
Australian markets advanced for a third day on expectations of a swift economic rebound from the coronavirus pandemic.
The benchmark S&P/ASX 200 index climbed 106.50 points, or 1.83 percent, to 5,941.60, while the broader All Ordinaries index ended up 104.80 points, or 1.76 percent, at 6,064.90.
Woodside Petroleum, Santos and Oil Search rallied 3-5 percent as oil prices hovered near three-month highs.
Mining heavyweights BHP and Rio Tinto rose 2.6 percent and half a percent, respectively, while the big four banks surged 3-5 percent.
Gold miner Evolution slumped 5.8 percent and Newcrest gave up 2.3 percent after gold prices declined overnight.
Austal dropped 1.4 percent. The shipbuilder said it has promoted chief operating officer Patrick Gregg to the position of chief executive officer, succeeding David Singleton who will complete his contract at the end of the year.
On the data front, Australia's gross domestic product dropped a seasonally adjusted 0.3 percent sequentially in the first three months of 2020, the Australian Bureau of Statistics said. That matched expectations following the 0.5 percent quarterly gain in the three months prior.
On a yearly basis, GDP expanded 1.4 percent - again matching expectations and slowing from 2.2 percent in the previous quarter.
The total number of building permits issued in Australia dropped a seasonally adjusted 1.8 percent month-on-month in April, while the country's private sector contracted substantially in May amid ongoing measures to contain the spread of the coronavirus, separate reports showed.
Seoul stocks soared amid hopes for a global economic recovery and reduced tensions between the world's largest economies.
Sentiment was also bolstered after the government unveiled a 35.3 trln won ($28.8 billion) supplementary budget, raising the total stimulus to 270 trillion won to counter the economic fallout from the coronavirus.
The benchmark Kospi rallied 59.81 points, or 2.87 percent, to 2,147. Market heavyweight Samsung Electronics jumped 6 percent and No. 2 chipmaker SK Hynix surged 6.5 percent.
New Zealand shares rose notably, with the benchmark S&P/NZX 50 index climbing 84.10 points, or 0.76 percent, to 11,118.27. Vista Group International shares jumped as much as 21.3 percent and Tourism Holdings surged 10.2 percent.
U.S. stocks advanced overnight as investors looked past nationwide civil unrest and U.S.-China tensions to focus on improvement in the Covid-19 heath crisis and the gradual reopening of businesses.
The Dow Jones Industrial Average rallied 1.1 percent, the tech-heavy Nasdaq Composite rose about 0.6 percent and S&P 500 added 0.8 percent.
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