CANBERA (dpa-AFX) - Asian stocks posted strong gains on Wednesday after Fed Chair Jerome Powell did not provide any new details on interest rates at his Senate confirmation hearing.
Powell has made it clear interest rates will increase if inflation persists but also said he expects some of the supply chain problems that are pushing up prices will ease in the middle of this year.
Investors also digested Chinese inflation data and looked ahead to the release of U.S. December inflation data later in the day for further clues on the rate outlook.
Chinese shares rose notably as data showed inflationary pressure in the county eased further in December, thanks to lower food and commodity prices.
The benchmark Shanghai Composite index rose 29.99 points, or 0.84 percent, to 3,597.43 while Hong Kong's Hang Seng index jumped as much as 663.11 points, or 2.79 percent, to 24,402.17, led by tech stocks.
Consumer prices in China were up 1.5 percent year-on-year in December, the National Bureau of Statistics said earlier today. That was shy of expectations for an increase of 1.8 percent and was down sharply from 2.3 percent in November.
The bureau also said that producer prices climbed an annual 10.3 percent, missing forecasts for an increase of 11.1 percent and slowing from 12.1 percent a month earlier.
China largely tamed its initial outbreak with a mix of lockdowns, border closures and mass testing, but a recent flare up of Covid-19 cases, notably in Tianjin, has weighed on the growth outlook for the first quarter before the upcoming Spring Festival and Winter Olympics.
Japanese shares rallied to snap a three-day losing streak. The Nikkei average ended up 543.18 points, or 1.92 percent, at 28,765.66 after having struck a nearly three-week low the previous day amid concerns over resurging coronavirus cases in the country. The broader Topix index closed 1.64 percent higher at 2,019.36.
Heavyweights topped the gainers list, with technology investor SoftBank Group climbing 6 percent and Fast Retailing, the operator of the Uniqlo casual clothing chain, rising 1.8 percent.
Tokyo Electron, a semiconductor equipment maker, jumped 3.8 percent tracking gains among its U.S. peers overnight.
Australian markets gained ground, led by technology and resource-related stocks. The benchmark S&P/ASX 200 index climbed 48.80 points, or 0.66 percent, to 7,438.90 while the broader All Ordinaries index ended up 51.50 points, or 0.67 percent, at 7,762.20.
Buy now, pay later darling Afterpay soared 4.8 percent after saying it received an approval for its takeover. Strong commodity prices lifted miners, with heavyweights BHP and Rio Tinto rising 1.1 percent and 0.9 percent, respectively.
Gold miners Evolution, Northern Star Resources and Newcrest rallied 2-3 percent after bullion prices climbed. Woodside Petroleum and Santos jumped around 4 percent each after oil prices jumped nearly 4 percent overnight.
Seoul stocks rose the most in six weeks as investors appeared pleased with a less-hawkish stance by the U.S. Federal Reserve Chair Jerome Powell. The Kospi average jumped 45.10 points, or 1.54 percent, to close at 2,972.48, logging the sharpest rise since Dec 2. Naver, Samsung Biologics and LG Chem soared 3-5 percent.
New Zealand shares ended lower as travel-related stocks declined, driven by rising uncertainty around the Omicron Covid-19. The benchmark NZX-50 index slid 27.25 points, or 0.21 percent, to 12,804.48.
Travel booking software firm Serko lost 5 percent and Tourism Holdings tumbled 4 percent. Church donation platform Pushpay Holdings bounced back from an 18-month low to close 4.1 percent higher.
U.S. stocks bounced back overnight and Treasury yields retreated in choppy trade as investors absorbed remarks from the Federal Reserve that interest rates are likely to rise this year, but monetary policy will take a broad and forward-looking view, keeping pace with an ever-evolving economy.
The tech-heavy Nasdaq Composite climbed 1.4 percent, while the S&P 500 added 0.9 percent and the Dow rose half a percent.
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