Asian stocks ended Wednesday firmly in the green, with the Hang Seng and Nikkei posting their biggest single-day gains since December 2011 and October 2008 respectively.
The Hong Kong-based index closed up more than 4% as bargain-hunting and two straight days of gains on the mainland provided support. The Shanghai Composite finished the day up more than 2%, adding to gains made Tuesday following a late-session turnaround, amid likely intervention by the government to prop up shares.
This apparent end to recent market turbulence boosted sentiment around the region, with the Nikkei closing up a massive 8%, putting the Japanese index back in positive territory for the year after a slump yesterday wiped out gains made since January. Investors in Japan were also cheered by comments from Prime Minister Shinzo Abe, who reportedly told a meeting of investors that he would seek to lower the corporate tax rate by at least 3.3 percentage points next financial year, according to Reuters.
Australian stocks also had a strong showing, tracking overnight gains on Wall Street and in Europe. Banking stocks led the charge, with energy stocks not far behind.
Australia ASX All Ordinaries +103.40 +2.01% 5,236.90
Shanghai SE Composite Index +72.64 +2.29% 3,243.09
Hang Seng +872.27 +4.10% 22,131.31
Nikkei 225 +1,343.43 +7.71% 18,770.51