SYDNEY, Australia funds flowed into stocks in Asia on Wednesday out of declining bond markets, giving a welcome lift to most indices.
Jun Bei Liu a portfolio manager at Tribeca Investment Partners in Sydney told Reuters on Wednesday that stocks sold too much and you see a bit of a rally.
We are facing a lot of interest rate increases, which is going to put a lid on valuation. We won't see the kind of valuation expansion we saw over the last few years. Japan's Nikkei 225 surged 816.05 points or 3.00 percent to 28,040 after the biggest mover was Japan's Nikkei 225. The move coincided with a collapse of the Japanese yen, which was last quoted around the Sydney close at 121.13.
In Hong Kong, the Hang Seng increased by 281.73 points or 1.29 percent to 22,171. The Australian All Ordinaries rose 44.30 points or 0.58 percent to 7,665. In New Zealand, the S&P NZX 50 went against the trend, losing 143.69 points or 1.18 percent to 12,061. The U.S. dollar was under pressure on foreign exchange markets. The euro was steady at 1.1023. The British pound had its overnight gains last quoted at 1.3261.
The Swiss franc went up to 0.9338. The Australian dollar rose to 0.7457. Technology stocks fared best on Wall Street, with the Nasdaq Composite advancing by 270.36 points, or 1.95%, to 14,108 overnight. The Dow Jones Industrial Average gained 254.47 points, or 0.74%, to 34,807. The Standard and Poor's 500 advanced 50.43 points, or 1.13%, to 4,511.