Asian Shares Advance On BOJ Comments

(RTTNews) - Asian stocks advanced on Wednesday after Bank of Japan Deputy Governor Uchida Shinichi said the central bank won't raise interest rates when financial markets are volatile.

The dollar held steady in Asian trade and gold edged up marginally after Federal Reserve officials reassured markets that the U.S. is not headed for a recession.

Oil prices fluctuated in Asian trade after industry data showed an unexpected inventory build, countering global oil supply concerns.

China's Shanghai Composite index finished marginally higher at 2,869.83 after July trade data proved to be a mixed bag. Hong Kong's Hang Seng index climbed 1.38 percent to 16,877.86.

China's exports grew less than expected at the start of the third quarter, while imports rebounded on domestic demand, official data showed.

Exports posted an annual growth of 7.0 percent in July. This was weaker than the forecast of 9.7 percent and followed an 8.6 percent expansion in June.

On the other hand, imports surged 7.2 percent annually, reversing the 2.3 percent decrease in June and also stronger than the consensus 3.5 percent increase.

Japanese markets rose for a second day running on dovish BOJ signals. The Nikkei average fell more than 900 points at the opening before reversing course to end the session up 1.19 percent at 35,089.62.

The broader Topix index settled 2.26 percent higher at 2,489.21. The yen weakened to the 147-yen level after earlier trading in a 144-yen band.

Technology investor SoftBank surged 5.2 percent after it unveiled plans to buy back a hefty $3.4 billion in shares.

Air conditioning equipment maker Daikin Industries plunged 10 percent after its first-quarter operating income came in below estimates.

Seoul stocks ended higher for a second straight session, with the Kospi average rising 1.83 percent to 2,568.41 amid gains in the tech sector. Market bellwether Samsung Electronics jumped 3 percent and No. 2 chipmaker SK Hynix rallied 3.4 percent.

Australian stocks extended gains from the previous session, with property and energy stocks pacing the gainers.

The benchmark S&P/ASX 200 inched up 0.25 percent to 7,699.80 while the broader All Ordinaries index closed up 0.29 percent at 7,913.10.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index jumped 0.66 percent to 12,326.17.

U.S. stocks rebounded overnight after three straight days of losses.

Investors hunted for bargains as Caterpillar and Uber reported solid earnings and Fed officials clarified the U.S. is not headed for a recession.

In economic news, U.S. trade gap narrowed less than expected in June and the Atlanta Fed raised its third quarter growth projection for the U.S. economy.

The Dow gained 0.8 percent, while the S&P 500 and the tech-heavy Nasdaq Composite both added around 1 percent.