Asia Markets Surge Following Wall Street Earnings Boost — Japan, Australia Lead Pack

Asian markets surged Wednesday morning with Japan’s Nikkei leading the pack after Wall Street witnessed heavy buying, the day before, led by upbeat corporate earnings and expectations of gas supply resumption to Europe from Russia helped calm investor angst.

The Nikkei 225 shot up 2.4% by noon with the index having returned more than 7% over a month. Investors will be keenly eyeing the Bank of Japan’s policy decision on  Thursday.

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The Shanghai Composite Index was up 0.67% and the Shenzen Component gained 0.61%. China has kept its benchmark lending rate unchanged.

The South Korean Kospi was trading higher by 0.78%. Australia’s ASX rose 1.62%.

In Vietnam, the VN-Index rose 1.53% while the Cambodian CSX index was down 0.29%.

Indian markets also followed the trend, with the Sensex and the Nifty rising over 1% in morning trade.

Macro Factors: China has kept its benchmark lending rates unchanged with policymakers taking a cautious stance amid growing inflationary pressures and rate hikes across the world.

The Bank of Japan is set to unveil its policy decision on Thursday. The Japanese government has indicated it will appoint Hajime Takata and Naoki Tamura as board members at the Bank of Japan, reports the Japan Times. Takata has earlier warned of the consequences of ultra-easy monetary policy and some market participants see this as a potential shift from the current policy.

Company News: The world’s second-largest steel maker Nippon Steel Corp NPSCY recently bought a liquefied natural gas shipment at the highest price ever paid in Japan, reports the Japan Times. The development comes in the wake of Russian LNG supply disruption fears.