Asian Shares Climb In Broad Rally

market trends1 100121 04oct22 lt

Asian shares climbed on Tuesday amid hopes for a dovish pivot from the U.S. Federal Reserve. The Bank of England is the first to pivot back to quantitative easing, claiming to restore market functioning and reduce risks of contagion.

Sentiment was also boosted after the British government made a dramatic U-turn on one of the tax cuts that contributed to extreme bond market turmoil last week.

While yield-sensitive technology stocks posted strong gains, trading volumes were thinned by a week-long holiday in China and Hong Kong.

Japanese shares rose the most in more than six months as investors chased for bargain hunting in beaten-down heavyweights and growth stocks.

Investors shrugged off news that nuclear-armed North Korea fired a ballistic missile over Japan for the first time in five years, prompting evacuation warnings.

Also, data showed earlier in the day that inflation in Japan's capital stood above the BOJ's 2 percent target for a fourth consecutive month.

The Nikkei average jumped 2.96 percent to 26,992.21, marking its biggest daily gain since March 23 and the highest close since Sept. 22. The broader Topix index ended 3.21 percent higher at 1,906.89 in its sharpest daily gain since March 10.

Uniqlo clothing shop owner Fast Retailing gained 2 percent and technology investor SoftBank Group surged 5.1 percent. Tokyo Electron, Japan Petroleum and Inpex rallied 3-5 percent.

Trading giant Itochu soared 8.3 percent after raising its profit forecast and announcing a share buyback.

Seoul stocks rebounded from more than a two-year low after U.S. Treasury yields retreated from levels unseen in about a decade. The Kospi average jumped 2.50 percent to 2,209.38 as traders returned to their desks after a holiday on Monday for the National Foundation Day holiday.

Big-cap tech shares topped the gainers list, with Samsung Electronics and SK Hynix both rising around 4 percent on hopes that potential production cuts by chipmakers would offset weakening market demand.

Australian markets led regional gains after the Reserve Bank hiked rates by less than expected, saying it wants to strike a balance between tightening policy and ensuring that economic growth remains steady.

The benchmark S&P/ASX 200 jumped 3.75 percent to 6,699.30 while the broader All Ordinaries index closed 3.74 percent higher at 6,905.30.

Export-reliant mining and consumer goods stocks led the surge as the Australian dollar sank after the RBA's surprisingly dovish decision.

Across the Tasman, New Zealand's NZX-50 index rose 1.19 percent to 11,090.03.

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