Asian Shares Extend Gains On Fed Rate Cut Optimism

(RTTNews) - Asian stocks rose for a third day running on Wednesday as weak U.S. economic data bolstered investor hopes for a Federal Reserve interest rate cut next month.

Gold hit a two-week high as the dollar and U.S. Treasury yields eased on rate cut expectations. Oil recovered some ground after closing at a one-month low in the previous session on signs a Ukrainian peace deal is getting closer.

China's Shanghai Composite index slipped 0.15 percent to 3,864.18 as Chinese state-backed property developer Vanke's bonds tumbled, reigniting market concerns about the company's recovery prospects and broader real-estate risks. China Vanke shares slumped 6.3 percent in Hong Kong.

Hong Kong's Hang Seng index edged up by 0.13 percent to 25,928.08. Alibaba Group Holding shares fell 1.9 percent despite the e-commerce giant posting better than expected results in the second quarter of the ongoing fiscal.

Japanese markets rallied amid expectations of more Fed rate cuts. The Nikkei average jumped 1.85 percent to 49,559.07 while the broader Topix index closed up 1.96 percent at 3,355.50.

The yen edged up following reports the Bank of Japan was preparing markets for a possible interest rate hike as soon as next month.

SoftBank Group shares surged 5.7 percent after the technology investor said Ampere has become its wholly owned subsidiary.

Chip-testing equipment maker Advantest gained 2 percent and Uniqlo brand owner Fast Retailing added 1.8 percent.

Seoul stocks rose sharply after Finance Minister Koo Yun-cheol said that South Korea's economy is at a "turning point" that will shape its growth trajectory for decade. He also pledged "decisive action" to curb excessive volatility in the foreign exchange market.

The Kospi average surged 2.67 percent to 3,960.87, marking the highest daily close since last Thursday, when it finished at 4,004.85.

Market bellwether Samsung Electronics climbed 3.5 percent and its chipmaking rival SK Hynix rose 1 percent. Internet company Naver vaulted 4.2 percent ahead of a board meeting to approve its planned acquisition of Dunamu Inc.

Australian markets rose notably despite inflation for October coming hotter than expected. Core inflation exceeded estimates, denting near-term rate-cut hopes.

The benchmark S&P/ASX 200 climbed 0.81 percent to 8,606.50, with materials, healthcare and consumer discretionary stocks leading the surge. The broader All Ordinaries index settled 0.85 percent higher at 8,899.30.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index rose 0.61 percent to 13,562.01 after the Reserve Bank of New Zealand cut its benchmark official cash rate by 25 basis points to over three-year low and signaled it was done easing.

Overnight, U.S. stocks rose for a third consecutive session as new data helped reinforce bets that the Federal Reserve will cut interest rates in December.

Retail sales increased less than expected in September, while wholesale inflation picked up from a month earlier on higher energy and food costs.

Consumer confidence lost momentum in November, reaching its lowest level in seven months because of anxiety about jobs and the economy.

ADP reported rising weekly layoffs, with losses amounting to 13500 in each of the past four weeks.

Meanwhile, Treasury yields fell after White House National Economic Council Director Kevin Hassett emerged as the front-runner to serve as the next Fed chair.

The Dow jumped 1.4 percent, the S&P 500 climbed 0.9 percent and the tech-heavy Nasdaq Composite gained 0.7 percent.