Asian stocks rose broadly on Wednesday on optimism over growth in the U.S. economy. Japan's Nikkei index rallied to end above the 15,000 mark for the first time since December 2007 on further weakening of the yen and India's Sensex rallied over 2 percent to regain the 20,000 mark on growing hopes of another interest rate cut in June, while stocks elsewhere posted modest gains, awaiting U.S. data on industrial production and homebuilder confidence scheduled to be released later in the global day. Another batch of upbeat data might add credence to the talk of a possible exit strategy from the Federal Reserve.
Japan's Nikkei index rose 2.3 percent to 15,096, its highest closing level since December 28, 2007, buoyed by a falling yen and rising global equities on signs of brighter outlook for the U.S. economy. The broader Topix index advanced 1.8 percent to 1,253, its highest level since Aug. 29, 2008.
Automakers Honda Motor and Toyota Motor rose 3-4 percent after the dollar hit a 4-1/2 year high against the yen. Sony jumped 12 percent on a proposal to spin off its entertainment unit. Isuzu Motors soared 21 percent after forecasting better-than-expected operating profit.
Heavyweight Fas Retailing rose 2.1 percent, KDDI rallied 3.6 percent and SoftBank jumped 4.6 percent. Lender Mitsubishi UFJ Financial Group rallied 3.1 percent on expectations it will raise its dividend for fiscal 2012 for the first time in five years. Real estate developer Nomura Real Estate lost 2.5 percent and consumer finance firm Aiful plunged 21 percent on concerns over a recent sharp rise in long-term bond yields. Sharp plummeted 13 percent after the struggling electronics maker posted a record annual loss for the second year in a row.
China's Shanghai Composite index closed 0.4 percent higher, with growth concerns capping the upside after Premier Li Keqiang said the economy is facing relatively strong downward pressure. Warning against more government direct investment, Chinese Premier Li Keqiang said in a speech on May 13 that the government must rely on market mechanisms for boosting growth as the risks of increasing stimulus outweigh the benefits. Hong Kong's Hang Seng index closed half a percent higher.
Australian shares erased early gains, as miners suffered from lower commodity prices. The benchmark S&P/ASX 200 rose 0.4 percent early in the session before reversing direction to end 0.6 percent lower at 5,192. BHP Billiton dropped 1.9 percent and Rio Tinto lost 3.1 percent after they announced spending cuts and asset sales to enhance shareholder value. Smaller rival Fortescue Metals Group slumped 4 percent, while mining services contractor UGL plunged 17 percent after slashing its full-year profit guidance.
A tight federal budget unveiled last night dragged the Australian dollar to an 11-month low, benefiting stocks like QBE Insurance and Treasury Wines Estates, which rose 0.8 percent and 1.6 percent, respectively. Rating agencies Moody's and Standard & Poor's both affirmed Australia's triple-A credit rating despite the projected budget deficits. Among the major banks, Commonwealth rose 0.8 percent on reporting a profit rise and ANZ closed 0.3 percent higher, but NAB eased 0.1 percent and Westpac slid 0.3 percent.
Seoul stocks moved in a narrow range before ending almost flat, as investors adopted a cautious stance amid a lack of market momentum and lingering concerns over the yen's slide. The benchmark Kospi average closed 0.1 percent higher at 1,971. Telecoms stocks led the decliners, offsetting gains in financials and shipbuilders.
New Zealand shares ended nearly flat, with the benchmark NZX-50 rising 0.5 points or 0.01 percent to 4,646. Exporter Fisher & Paykel Healthcare soared 4.8 percent to a two-year high, benefiting from a kiwi dollar which hovered near its recent five-year high. Specialty chemicals maker Nuplex Industries advanced 1.9 percent and Fletcher Building, the nation's largest construction company, gained a percent, but Telecom lost over 2 percent.
India's benchmark Sensex is rallying 2.4 percent on rate cut hopes after RBI Governor D Subbarao said the central bank will take note of falling inflation when discussing potential interest rate cuts. Elsewhere, Indonesia's Jakarta Composite index is rising 0.2 percent, Singapore's Straits Times is gaining 0.3 percent and the Taiwan Weighted average advanced 0.8 percent, while Malaysia's KLSE Composite index is moving down 0.3 percent.
U.S. stocks posted notable gains overnight on optimism the U.S. economy is gaining traction. The Dow rose 0.8 percent and the S&P 500 added a percent to new record highs, while the tech-heavy Nasdaq gained 0.7 percent to set another fresh twelve-year high.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.