Japan’s Nikkei rebounded sharply on Wednesday morning thanks to a rally in U.S. stocks after U.S. Federal Reserve Chairman Jerome Powell signalled a possible rate cut in a boost to riskier assets.
The Nikkei share average rose 1.9% to 20,785.71 in midmorning trade, posting the biggest daily percentage gain since March 26.
All of the Topix’s 33 subsectors were in positive territory, with the broader Topix also jumping 1.8% to 1,526.26.
Powell said the central bank would act “as appropriate” to address trade war risks a day after St. Louis Fed chief James Bullard said a rate cut may be warranted soon. Powell said the Fed was “closely monitoring the implications” of a trade dispute that has disrupted global markets.
Source : Reuters