Asian stocks surged on Wednesday, as markets lowered expectations regarding the pace of interest rate hikes this 2016, boosting bonds and pushing the US dollar lower.
MSCI's broadest index of Asia-Pacific shares outside Japan recovered from four losing session to climb by 1.4 percent. Meanwhile, Shanghai edged up by 1.6 percent and South Korea reached its highest for this year so far.
Spread betters anticipated opening gains of about 0.5% to 0.6% for the FTSE 100, DAX, and CAC.
The move came after the Federal Reserve Chair Janet Yellen highlighted global risks to growth and inflation, and made dovish remarks regarding the tightening policy.
Debt markets also surged significantly, in response with yields on 10-year US Treasury Note plunging 7 basis points to 1-month low of 1.80 percent.
The S&P 500 and Dow Jones 30 ended yesterday’s session at their highs for 2016, with Technology stocks leading gains. The S&P 500 spiked by 0.88 percent, while the Dow gained 0.56 percent and the NASDAQ soared 1.67 percent.
Meanwhile, the greenback slumped across the board. The US dollar index was down at 95.093, reflecting its largest one-day decline in almost 2 weeks.
The plunge in the US currency helped the prices of crude oil to recover a bit, as did a forecast that US inventories may have grown by less than expected.