Japan, Hong Kong markets jump more than 2%; SoftBank Group shares surge 8%

Key Points

• Shares in Japan led gains in Asia-Pacific in Wednesday morning trade.
• In Hong Kong, shares of Xiaomi surged 5.49% after the firm announced Tuesday plans to repurchase shares in the open market “from time to time” at a maximum aggregate price of 10 billion Hong Kong dollars (about $1.28 billion).
• Investors also monitored moves in the oil markets, with sources telling CNBC that the European Union is unlikely to impose an immediate oil embargo on Russia over its unprovoked invasion of Ukraine.

SINGAPORE — Shares in Japan and Hong Kong jumped during Wednesday morning trade, as investors monitored oil prices and continued to assess the outlook for U.S. Federal Reserve monetary policy.

Japan’s Nikkei 225 rose 2.66% as shares of SoftBank Group jumped 8.27%. The Topix index advanced about 2%.

In Hong Kong, the Hang Seng index surged around 2%. Shares of Xiaomi soared 6.76% after the firm announced Tuesday plans to repurchase shares in the open market “from time to time” at a maximum aggregate price of 10 billion Hong Kong dollars ($1.28 billion). Xiaomi on Tuesday also announced a 21.4% year-over-year rise in its fourth-quarter revenue.

Shares of Chinese tech giant Tencent also jumped 3.35%, ahead of its fourth quarter and annual results announcement expected later on Wednesday.

Mainland Chinese stocks turned around from earlier declines, with the Shanghai composite climbing 0.25% and the Shenzhen component rising 0.75%.

South Korea’s Kospi gained 0.57%. Over in Australia, the S&P/ASX 200 climbed 0.46%.

MSCI’s broadest index of Asia-Pacific shares outside Japan traded 1% higher.

Oil watch

Investors monitored moves in the oil markets, with sources telling CNBC that the European Union is unlikely to impose an immediate oil embargo on Russia over its unprovoked invasion of Ukraine.

In the morning of Asia trading hours on Wednesday, international benchmark Brent crude futures rose 1.75% to $117.48 per barrel. U.S. crude futures climbed 1.71% to $111.13 per barrel.

Oil prices slipped on Tuesday after gains in the past few days, though Brent continues sitting above the $100 per barrel mark that it fell below last week.

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Overnight on Wall Street, the S&P 500 climbed 1.13% to 4,511.61. The Dow Jones Industrial Average advanced 254.47 points, or 0.74%, to 34,807.46. The Nasdaq Composite surged 1.95% to 14,108.82.

Markets will continue to assess the outlook for U.S. Federal Reserve policy.

U.S. Federal Reserve Chairman Jerome Powell said earlier this week that the central bank is set to take tough action on inflation, with traders now betting the Fed will drive up interest rates even faster than expected just last week.

Currencies

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 98.494 following a recent drop from above 98.8.

The Japanese yen traded at 120.91 per dollar, weaker than levels below 120 seen against the greenback yesterday. The Australian dollar was at $0.7453, largely holding on to gains after yesterday’s rise from around $0.738.

TICKER	COMPANY	NAME	PRICE	CHANGE	%CHANGE
.N225	Nikkei 225 Index	*NIKKEI	27973.74	749.63	2.75
.HSI	Hang Seng Index	*HSI	22267.76	378.48	1.73
.AXJO	S&P/ASX 200	*ASX 200	7380.1	39	0.53
.SSEC	Shanghai	*SHANGHAI	3255.32	-4.54	-0.14
.KS11	KOSPI Index	*KOSPI	2724.42	14.42	0.53
.FTFCNBCA	CNBC 100 ASIA IDX	*CNBC 100	9365.41	164.97	1.79

Source : CNBC