Tokyo, Japan (BBN)-Japan’s Nikkei surged almost 8 per cent on Wednesday in its biggest one-day jump since late 2008.
The benchmark index closed up 7.71 per cent at 18,770.51 points. A day earlier, the index saw all the gains it had made this year wiped out, reports BBC.
Remarks by newly re-elected prime minister Abe suggesting company tax cuts were on the way helped the mood.
Also positive were Tuesday’s rebound for US shares and an improving Chinese share market.
Investor sentiment was up across the rest of Asia.
Tuesday’s weak economic data from China has also raised hopes of more stimulus for that economy and its markets.
On mainland China, the Shanghai Composite was up 1.2 per cent at 3,208.51 points in late afternoon trade – while Hong Kong’s Hang Seng benchmark was up 2.75 per cent at 21,845.06.
In Australia, the S&P/ASX 200 closed up 2.07 per cent at 5,221.10, taking its lead from US markets.
Analysts said resource and commodity shares, together with some of the big bank stocks, had buoyed the Australian index.
Numbers out on Wednesday showed consumer confidence slid in September which led to revived hopes of another rate cut by the Reserve Bank of Australia.
South Korea’s Kospi benchmark index also closed up 2.96 per cent at 1,934.20 points. Official data released on Wednesday showed the country’s latest unemployment figures for August sitting at their lowest since January this year.
‘Sea of green’
Chris Weston from IG Markets said it would be a good news day for markets and that there was a “sea of green on screen in risk associated assets”.
“This pick-up in sentiment once again started from a nice move higher in S&P futures during Asia, helped on by some really bullish flow in the Chinese markets,” he said in a note.
“Specifically, the H-shares (Chinese dual-listed companies trading in Hong Kong) had its best day [on Tuesday] in months,” he added.
“In the Chinese mainland, there has been some focus on headlines on a 50% reduction in personal income tax dividends for larger shareholders, with the idea being to move the market away from short-term and focus on the longer-term.”