Asian stocks track Wall Street, Oil rebound

A classic risk-on theme dominates the Asian markets this Wednesday, with the region’s indices staging a solid rebound following a strong close on the Wall Street overnight and a rebound in the oil prices.

The US stocks surged last Tuesday after the new homes sales report surprised markets to the upside and further backed the case for a June Fed rate hike, fuelling a renewed bout of risk-on wave across the markets.

Nikkei leads Asian markets rebound

The Japanese benchmark index, the Nikkei 225 jumps +1.83% to 16,800 points as USD/JPY now tests highs near 110.15 levels, up 0.14% on the day. Australia’s ASX 200 index rallies +1.65% to 5,385 points, led gains in the heavily-weighted financials, energy and materials sub-indices.

While the Chinese equities flipped to gains and now extend higher, with the benchmark Shanghai Composite index up +0.71%, the CSI300 index also trades +0.82% higher.