Asian stocks recorded moderate gains early on Wednesday, taking cues from Wall Street’s gains, as markets in the region extended the advance seen in the previous session.
Japan’s Nikkei 225 edged up by 0.28 percent in morning trade, with the other financials subindex trading higher by 1.74 percent and leading the morning’s gains. Oil and coal products, shipping stocks and telecommunications also saw a rise of more than 1 percent.
South Korean stocks saw similar gains, with the Kospi adding 0.23 percent. In Australia, the S&P/ASX 200 was up 0.25 percent, with the near 1 percent gain in energy-related stocks buoying the broader benchmark. The heavily weighted financials subindex traded higher by 0.41 percent.
Wall Street rose on Tuesday, with the churn of positive earnings overshadowing investor concerns over recently proposed tariffs in the U.S.-China trade dispute. Through Friday, S&P 500 earnings are up 24 percent in the second quarter on a year-over-year basis.
The S&P 500 advanced 0.28 percent to finish at 2,858.45, only 0.5 percent away from its record high of 2,872.87 set in January. Other U.S. indexes had also recorded gains for the day.
The pick-up in sentiment came despite a backdrop of elevated trade tensions after China last week said it was preparing tariffs, ranging from 5 percent to 25 percent, on some $60 billion in U.S. imports.
That came after U.S. President Donald Trump asked U.S. Trade Representative Robert Lighthizer to consider increasing proposed duties on $200 billion of Chinese goods to 25 percent from an earlier announced 10 percent.
Meanwhile, the USTR said on Tuesday that 25 percent U.S. tariffs on $16 billion in Chinese goods will take effect on August 23. An earlier wave of duties on $34 billion in Chinese imports took effect on July 6.
Chinese stocks had rebounded on Tuesday after taking a hit in recent sessions, with the Shanghai Composite jumping more than 2 percent on the back of four consecutive sessions of declines. Gains in Chinese shares in the last session came amid optimism over increased government spending on infrastructure, according to Reuters.
In currencies, the dollar index, which tracks the U.S. dollar against a basket of currencies, drifted lower. The index last stood at 95.118. Against the yen, the dollar traded at 111.32 at 8:13 a.m. HK/SIN.
On the earnings front, Asian corporates reporting results on Wednesday include Japan Display, CJ E&M and Hong Kong Exchanges and Clearing.
Ahead, July trade data from China is expected at 11:00 a.m. HK/SIN.
Among notable moves in early trade, shares of auto parts maker Hyundai Mobis jumped 4.68 percent as logistics unit Hyundai Glovis dropped 8.09 percent. The moves came as investors reacted to a local media report on restructuring plans. Hyundai Motor shares advanced 2.8 percent.
