Asian equities mostly higher as market sentiment improves

Equity indexes in Asia were mostly higher on Wednesday, following a strong lead from Wall Street based on strong corporate earnings seen in recent sessions.

Japan’s Nikkei 225 added 1.47 percent and the broader Topix was up 1.14 percent, with retailers, utilities and technology among best performers of the day.

The South Korean Kospi benchmark rose 1.07 percent, with brokerage firms and manufacturing stocks contributing most gains, while technology names showed a mixed performance.

Hong Kong's Hang Seng Index was able to recover from previous session losses, soaring 0.44 percent by the time of this writing. In mainland China, the Shanghai composite and the Shenzhen composite were up by 0.80 percent and 0.92 percent respectively.

On Tuesday, China’s monetary authorities reduced the reserve requirement ratio by 100 basis points for a selection of banking institutions. Analysts pointed out that is a positive move as it allows banks to cut funding costs and therefore offer more competitive products.

Overnight, China said it would impose deposits of up to 178.9 percent on American sorghum imports. According to news agency Reuters, China’s decision will be temporary.

In Australia, the S&P/ASX 200 index was up 0.34 percent, with energy-related components and materials pushing the benchmark to the upside, while financial names weighed.

On Tuesday, Netflix, Goldman Sachs and UnitedHealth reported better-than-expected first-quarter earnings, boosting investors’ confidence. S&P 500 earnings are seen outperforming last year earnings by 18.6 percent.

In other news, former CIA Director Mike Pompeo travelled to North Korea to meet with Kim Jong Un ahead of a scheduled meeting with President Donald Trump. That could be interpreted as a sign of release and improving relations, which dampens demand for safe-havens.

Economic calendar:

The consumer price index in the United Kingdom will become available at 08:30 GMT, with analysts’ preview standing at a 2.8 percent growth rate. The producer price index input for March is also expected to be released by that time.

In the Eurozone, market players await the consumer price index as of 09:00 GMT, with a forecasted rate of 1.4 percent year-over-year.

Later on, in US hours, Fed’s beige book is due for release at 18:00 GMT.

FortFS