Hong Kong’s Hang Seng index soars more than 6%, rebounding after days of losses
SINGAPORE — Shares in Asia-Pacific were higher in Wednesday trade, as Chinese stocks saw a strong rebound following recent heavy losses.
On Tuesday, the Hang Seng had tumbled nearly 6% to close at its lowest since Feb. 2016.
The sharp reversal comes as investors continue to monitor the pandemic situation in the country, with China grappling with its most severe Covid outbreak since the height of the pandemic in 2020, with major cities scrambling to limit business activity.
Australia’s S&P/ASX 200 rose 1.1%. MSCI’s broadest index of Asia-Pacific shares outside Japan traded 3.58% higher.
Oil prices were higher in the afternoon of Asia trading hours of Wednesday, after tumbling on Tuesday and continuing its recent fall.
Overnight stateside, the Dow Jones Industrial Average jumped 599.10 points, or 1.82%, to 33,544.34. The S&P 500 index climbed 2.14% to 4,262.45 while the tech-heavy Nasdaq Composite surged 2.92% to 12,948.62.
The U.S. Federal Reserve is set to announce its latest interest rate decision Wednesday stateside. The central bank is widely expected to raise rates by a quarter point, its first hike since 2018.
Meanwhile, the Russian state is due to pay $117 million in interest on two sovereign eurobonds on Wednesday, the first of four payment dates to creditors in March alone as the country faces the prospect of defaulting on its debt. That comes after international sanctions on Russia’s central bank have blocked off a substantial portion of the country’s foreign exchange reserves following Russia’s invasion of Ukraine.
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 98.858 — above levels below 98 seen last week.
The Japanese yen traded at 118.24 per dollar, still weaker as compared with levels below 116.1 seen against the greenback last week. The Australian dollar was at $0.7225 after recently slipping from above $0.72.
— CNBC’s Elliot Smith contributed to this report.