Asian Shares Rise On China Recovery Hopes

(RTTNews) - Asian stocks rose broadly on Wednesday and the dollar eased after reports emerged that the wave of COVID infections sweeping across China may already have peaked in some of the country's largest cities.

Traders keenly awaited minutes from the Federal Reserve's December meeting later in the day and Friday's employment report for clues to the central bank's future actions.

Fed funds futures traders are pricing for rate cuts later this year despite hawkish rhetoric from Fed officials.

China's Shanghai Composite index edged up 0.22 percent to 3,123.52 on hopes of swift post-COVID recovery and more policy support to boost the economy.

Hong Kong's Hang Seng index jumped 3.22 percent to 20,793.11 after China's property developers reported forecast-beating December sales.

Japanese shares tumbled as traders returned to their desks after a long holiday weekend for the New Year.

The Nikkei average fell 1.45 percent to 25,716.86, marking its lowest close since March 15, as the yen advanced amid fears that the Bank of Japan might move away from its accommodative policies.

The broader Topix index closed 1.25 percent lower at 1,868.15. Shipping companies and oil explorers led declines, with Nippon Yusen plunging 6.5 percent and Inpex losing 4.2 percent.

Banks surged on expectations that they would benefit from BOJ's potential shift toward a more hawkish stance. Mitsubishi UFJ Financial Group jumped 4.2 percent and Mizuho Financial Group added 3 percent.

Seoul stocks rallied on bargain hunting after four days of losses. The Kospi average climbed 1.68 percent to 2,255.98 as foreigners snatched up shares of chipmakers such as Samsung Electronics and SK Hynix. Samsung surged 4.3 percent while the latter soared 7.1 percent.

Australian markets rallied, driven by strong gains in the mining, financial and technology sectors. Energy stocks bucked the positive trend after oil prices slumped more than 4 percent overnight.

The benchmark S&P/ASX 200 rose 1.63 percent to 7,059.20 while the broader All Ordinaries index gained 1.65 percent to settle at 7,249.10.

Across the Tasman, New Zealand's benchmark S&P/NZX 50 index ended 1 percent higher at 11,587.48.

U.S. stocks fell overnight, and the dollar jumped, as caution set ahead of key macroeconomic data due this week that could offer additional clues on when and where interest rates might peak.

The Dow finished marginally lower, while the tech-heavy Nasdaq Composite shed 0.8 percent and the S&P 500 eased 0.4 percent.