MSCI’s index of Asia-Pacific shares outside Japan snapped two days of losses and gained 0.6%.
Expectations that global bond yields will stay lower for longer amid a central bank shift to more accommodative policy also supported equities.
· Japan’s Nikkei share average struggled for traction on Wednesday and the broader Topix dipped after weak U.S. economic data stoked fears of a global recession and soured investor sentiment.
The benchmark Nikkei average ended up 0.12% at 20,649.14 points, while the broader Topix dropped 0.26% to 1,506.81.
U.S. manufacturing activity contracted for the first time in three years in August, with new orders and hiring declining sharply as trade tensions weighed on business confidence, data showed on Tuesday.
Cyclical sectors came under pressure, with metal products , iron and steel among worst performing sectors on the Topix.
“The weak U.S. ISM data underscored the view that a recession is highly probable. Global investors are preparing for it in a sombre manner,” said Yasuo Sakuma, chief investment officer at Libra Investments.
· The Hang Seng index in Hong Kong soared more than 3% during Wednesday afternoon trade following reports that a controversial extradition bill is set to be withdrawn.
Hong Kong Chief Executive Carrie Lam is set to announce on Wednesday the formal withdrawal of the extradition bill that sparked protests in the city that have lasted for months, Reuters reported, citing the South China Morning Post and other local media outlets.
· Stocks in Hong Kong soared nearly 4% on Wednesday afternoon trade following reports that a controversial extradition bill is set to be withdrawn.
By the market close, the Hang Seng index had jumped 3.9% to26,523.23, paring some gains after surging as high as more than 4%earlier.
· China stocks closed higher on Wednesday, bolstered by a private survey showing an upbeat services sector and helped by sharp gains in Hong Kong following reports the government would formally withdraw the proposed extradition bill.
The blue-chip CSI300 index rose 0.8 per cent, to 3,886.00, while the Shanghai Composite Index ended up 0.9 per cent, at 2,957.41.
Activity in China's services sector expanded at the fastest pace in three months in August as new orders rose, prompting the biggest increase in hiring in over a year, a private survey showed.
The pan-European Stoxx 600 jumped 1% in early trade, retail and bank stocks each adding 1.7% to lead gains as all sectors and major bourses traded in positive territory.
Reference: Reuter, CNBC
Thai
Eng