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Asian Markets Rise Following Rally on Wall Street

Investing.com - Asian markets rose in morning trade on Wednesday following an overnight rally on Wall Street.

China’s Shanghai Composite and the Shenzhen Component gained 0.3% and 0.4% respectively 10:38 PM ET (02:38 GMT). Hong Kong’s Hang Seng Index traded 0.7% higher.

The Caixin/Markit services purchasing managers' index fell to 52.7 in May, the lowest since February and down from April's 54.5. The data had little impact on equities.

Japan’s Nikkei 225 surged 1.9% even after a survey showed activity in the country’s services sector expanded at a slightly slower pace in May than the previous month.

South Korea’s KOSPI gained 0.5%.

Down under, Australia’s ASX 200 climbed 0.6% despite data that showed the country’s first quarter GDP came in at a softer-than-expected 0.4% quarter-on-quarter. Markets expected a 0.5% increase.

For year-on-year, the GDP was at 1.8%, in line with expectations.

The data came a day after the Reserve Bank cut interest rates for the first time in almost three years to spur economic growth.

The gains in Asian equities came after all major indexes on Wall Street jumped more than 2% overnight, following comments by U.S. Federal Reserve Chairman Jerome Powell that signalled the central bank was open to easing monetary policy to support the economy.

On the Sino-U.S. trade front, U.S. Treasury Secretary Steven Mnuchin is set to meet with the People’s Bank of China governor Yi Gang during the Group of 20 gathering of finance ministers and central bankers in Japan over the weekend, the Treasury Department said on Tuesday night.

Trade talks between China and the U.S. stalled after U.S. President Donald Trump unexpectedly raised tariffs on Chinese goods in May.

The U.S. accused China for backpedalling on key details of a trade deal that has been largely agreed, while China claimed the U.S. is an untrustworthy negotiator and blamed it for starting global trade problems.

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