Tokyo, Japan (BBN)-Asian markets headed mostly higher on Wednesday, recovering from the previous session’s steep losses as investors’ tried to regain confidence.
Japan’s Nikkei 225 index led the region’s gains, up 2.1 per cent at 17,291.86 after losing more than 4 per cent on Tuesday, reports BBC.
Investors ignored data that showed factory output shrank unexpectedly by 0.5 per cent in August from July, while retail sales also fell short of expectations.
Investors are awaiting the Bank of Japan’s business confidence survey.
The central bank’s quarterly Tankan survey due on Thursday is expected to show that business sentiment worsened in the three months to September.
Marcel Thieliant, economist at Capital Economics said the second consecutive drop in industrial production in August suggested that Japan’s economy shrank again in the quarter that ends in September.
“Additional easing by the Bank of Japan next month looks all but inevitable,” he said in a note.
Factory data ahead
Chinese shares opened higher as investors looked ahead to key manufacturing surveys on Thursday for evidence on the extent of the slowdown in the economy.
The closely-watched purchasing managers’ index (PMI) is likely to show the country’s factory sector shrank for the second month in a row in September.
The Shanghai Composite was up 0.5 per cent at 3,052.34, Hong Kong’s Hang Seng index was 1 per cent at 20,760.95 points.
Australia’s benchmark S&P/ASX 200 index was up 1 per cent at 4,965.30 after hitting a two-year low on Tuesday.
Meanwhile, South Korea’s Kopsi index was down 0.8 per cent at 1,927.11 as it reopened for the first time this week after public holidays.