Asian stocks rebounded from sharp losses the previous day as upbeat U.S. data eased global growth worries and reports suggested that the U.S. Federal Reserve would quell investor fears on QE tapering at its June 18-19 policy meeting. Investors seem to believe that the exit from stimulus will be slow and gradual to keep interest rates low as long as possible.
Japan's Nikkei index rebounded from Thursday's massive selloff that took the benchmark index into bear market territory. Easing fears over the Fed's eventual exit strategy lifted the Nikkei average up 241 points or 1.9 percent to 12,686, while the broader Topix index advanced 1.2 percent.
Heavyweight KDDI rose 2.9 percent on bargain hunting after tumbling 7 percent in the past three sessions, while Fast Retailing added 1.4 percent and Fanuc gained 1.6 percent. Realty firms gained ground, with Sumitomo Realty & Development and Mitsui Fudosan climbing 4-5 percent. Kawasaki Heavy Industries jumped 4.3 percent after the company ended merger talks with rival Mitsui Engineering & Shipbuilding and dismissed its president, Satoshi Hasegawa.
The yen edged higher versus most of its major counterparts after the minutes of Japan's monetary policy meeting held on May 21 and 22 showed a few members believed there remains considerable uncertainty and downside risk to the economy - particularly from abroad. One member said that the bank should limit its easing measure to two years in order to avoid financial imbalances that may result from the stimulus.
China's Shanghai Composite index closed up 0.6 percent, climbing off a 6-month low hit the previous day. Hong Kong's Hang Seng index gained 0.4 percent.
Australian shares gained ground on easing fears about Fed tapering. The benchmark S&P/ASX 200 rose 96 points or 2.1 percent to 4,792, posting broad-based gains. NAB led the banking sector higher with a 3.8 percent rally, while ANZ, Commonwealth and Westpac rose 2-3 percent.
Miners BHP Billiton, Rio Tinto and Fortescue Group rallied 3-5 percent, construction company Leighton Holdings soared almost 6 percent and telecommunications provider Telstra edged up 1.2 percent, while ASX slumped 6 percent after completing a capital raising. Westfield Group slid 1.3 percent after U.S. retail sales data released overnight showed a decline in discretionary spending.
South Korea's Kospi average closed 0.4 percent higher at 1,889, as investors went bargain hunting in undervalued shares following sharp declines in the previous session. Sentiment improved after South Korea's National Pension Service said it plans to allocate more funds to overseas equities while keeping its target for domestic equities unchanged.
Samsung Electronics rose 0.9 percent in the wake of better-than-expected U.S. retail sales and jobs data. Domestically, South Korea posted a trade surplus for the 16th straight month in May despite tough external market conditions, customs data showed.
New Zealand shares rose, with a strong kiwi dollar and a rally on Wall Street overnight boosting sentiment. The benchmark NZX-50 index rose 19 points or 0.4 percent to 4,421. Auction site Trade Me rallied 3.8 percent, leading the gainers on the exchange, while retirement village operator Metlifecare added 2.6 percent after lifting its operating cash-flow guidance for the year ended June 2013. SkyCity Entertainment Group and Telecom gained 2-3 percent, while children's clothing retailer Pumpkin Patch tumbled 4.8 percent.
Resins maker Nuplex rose 2 percent after the latest results of a survey by BNZ and BusinessNZ showed activity in New Zealand's manufacturing sector rose to its highest level in almost nine years in May. The performance of manufacturing index rose to 59.2 from 55.2 in April, driven by a rise in employment, new orders and production. Another report from Statistics New Zealand showed that food prices in New Zealand rose a seasonally adjusted 0.3 percent in May from the previous month, matching expectations.
India's Sensex was rallying 1.7 percent following encouraging WPI inflation data, which showed the nation's headline inflation rate slowed to 4.7 percent in May from 4.89 percent in the previous month, driven by declining prices of fuel and manufactured products. This is the second month in a row that inflation has fallen below RBI's comfort level of 5 percent.
Elsewhere, Indonesia's Jakarta Composite index was up 3.5 percent, Malaysia's KLSE Composite index was up over a percent and Singapore's Straits Times was adding 0.6 percent, while the Taiwan Weighted average slipped 0.2 percent.
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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.