Investing.com - Asia Pacific stock markets are poised for an upward trajectory after calming statements from US Federal Reserve officials soothed investor concerns.
S&P/ASX 200, KOSPI 200 Futures, and Nikkei 225 Futures each saw increases as of 9:10 am AEST (11:00 pm GMT) on Wednesday.
In the US, stocks climbed for a third consecutive day, and bonds experienced their best performance since August. This positive shift is attributed to Federal Reserve officials suggesting an end to short-term interest rate increases if long-term rates persist near their recent peaks.
The S&P 500, NASDAQ Composite, and Dow Jones Industrial Average all recorded gains, with the S&P 500's 11 sectors seeing broad-based increases. The 10-year Treasury yield dipped significantly, marking the most substantial one-session drop since late August. This development reversed the recent market selloff, providing much-needed relief to the stock markets.
PepsiCo Inc (NASDAQ:PEP) shares saw an uptick after the company reported earnings that surpassed Wall Street expectations. Other major companies, including JPMorgan Chase & Co (NYSE:JPM), Delta Air Lines Inc (NYSE:DAL), UnitedHealth Group Incorporated (NYSE:UNH), Domino’s Pizza Inc (NYSE:DPZ), and Wells Fargo & Company (NYSE:WFC) are set to deliver their results later this week.
Meanwhile, travel-related stocks, including Delta Air Lines Inc (NYSE:DAL), Marriott International Inc (NASDAQ:MAR), and Carnival Corporation (NYSE:CCL), made a comeback after Monday's dip.
In the commodities market, Brent and crude oil ticked 0.1% lower.
In the Australian bond markets, the yields on the 2 Year and 10 Year government bonds were at 3.396% and 4.444% respectively.
Meanwhile, among Asian currencies, the Australian Dollar and Indonesian Rupiah remained flat while the Thai Baht, Korean Won, and Vietnamese Dong each experienced a slight rise amid a weaker US Dollar Index.
In China, shares closed lower due to ongoing concerns about the country's economic growth and escalating geopolitical tensions in the Middle East. However, Hong Kong shares bucked the trend, seeing gains in the consumer and tech sectors, despite lingering concerns about financially strained property developers.
Japanese stocks closed higher, primarily driven by gains in energy and defense stocks, as geopolitical tensions in the Middle East led to a surge in crude oil prices. Meanwhile, Indian shares rebounded following a cautious start to the week, mirroring gains in most regional markets.
European markets also rose as investors' nerves were calmed following the outbreak of violence in the Middle East. The Stoxx 600, DAX, FTSE 100, and CAC 40 all recorded gains, with the FTSE 100 leading the pack, rising by 1.6%.