Investing.com - Asian stocks moved higher Wednesday, tracking gains on Wall Street and encouraged by the prospects of economic stimulus action from the U.S. Federal Reserve Bank.
During early Asian trade, Hong Kong’s Hang Seng Index rose 2% to 19,875.50, Japan’s Nikkei 225 Index advanced 0.6% 8,787.93, Australia’s S&P/ASX 200 climbed 0.9% to 4,208.80 and South Korea’s Kospi Index picked up 0.7% to 1,788.45.
Along with the Nikkei, the broader-based Topix Index of all issues listed on the first section of the Tokyo Stock Exchange eased 0.8% to 756.06.
Early in Tuesday trade, the U.S. Census Bureau reported that new home sales dropped more than expected in July, falling 0.7% to a seasonally adjusted annual rate of 298,000. Economist’s forecasts were for a 1% gain in July to 310,000.
In a separate report, the Richmond Federal Reserve Bank said its manufacturing index slumped to minus 10 in August from minus 1 in July, the lowest monthly rating since June of 2009. Forecasts were for the figure to fall to minus 7 for the month.
The numbers heightened expectations for the Federal Reserve’s meeting in Jackson Hole, Wyoming this week, where investors are hoping the Fed considers opening a new round of quantitative easing.
Wall Street shares rallied for the second day in a row, with the Dow Jones Industrial Average closing up 3%, the Nasdaq Composite Index rose 4.3%, and the S&P 500 gained 3.4%.
Meanwhile, in a report released by HSBC Holdings PLC and Markit Economics, China’s manufacturing index in August rose to 49.8 from 49.3 in July, outperforming expectations of a sharper contraction for the period.
Automobile companies and manufacturers led the way in Tokyo, with Komatsu Ltd. jumping 2.4%, MIstubishi Heavy Industries Ltd. advancing 2.6%, Nissan Motor Co Ltd. added 1%, and truck-maker Hino Motors Ltd. rose 2.3%.
In Seoul, Hyundai Motor Corp. surged 3.3%, and Kia Motors Corp. picked up 2.6%.
The outlook for European stocks was pessimistic . France’s CAC 40 futures was lower by 0.97% to 3,099.80, Britain’s FTSE 100 futures fell 0.73% to 5,161.80, while Germany’s DAX futures declined 0.66% to 5,591.10.