Shares in Asia jumped in Tuesday morning trade following a dramatic bounce back overnight on Wall Street.
Stocks in Australia also saw robust gains, with the S&P/ASX 200 up 3%.
Overall, the MSCI Asia ex-Japan index traded 2.21% higher.
Central bank watch
Investors on Tuesday likely focused on central bank announcements. In the Reserve Bank of Australia’s minutes of its June monetary policy meeting released Tuesday, the central bank’s board “recognised that the substantial, coordinated and unprecedented easing of fiscal and monetary policy in Australia was helping the economy through this difficult period.”
“It was likely that this fiscal and monetary support would be required for some time,” the RBA minutes said.
The Bank of Japan is also set to release its monetary policy statement sometime on Tuesday.
The U.S. Federal Reserve announced Monday more measures to support the market. The Fed said it would buy individual corporate bonds, marking a broader approach to corporate bond buying. Previously indicating it would eventually buy bonds on the primary market, Monday’s announcement by the U.S. central bank marked an expansion of that into the secondary market.
“I think the reality is that the Federal Reserve, learning from the experience of the global financial crisis, is that they can’t wait for things to happen and then act upon it,” Tai Hui, Asia chief market strategist at JPMorgan Asset Management, told CNBC’s “Squawk Box” on Monday. “The preemptive nature of a lot of these measures have been positive.”
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 96.553 after slipping from levels above 97 seen earlier.
Overnight on Wall Street, the Dow Jones Industrial Average closed 157.62 points higher at 25,763.16 while the S&P 500 gained 0.8% to end its trading day at 3,066.59. The Nasdaq Composite advanced 1.4% to 9,726.02.
The moves upward came following a sharp reversal from earlier losses during the trading day on Wall Street, with the Dow dropping more than 760 points before rebounding. The S&P 500 and Nasdaq fell as much as 2.5% and 1.9%, respectively.
Oil prices were lower in the morning of Asian trading hours, with international benchmark Brent crude futures down 1.13% to $39.27 per barrel. U.S. crude futures also slipped 1.16% to $36.69 per barrel.
What’s on tap for Tuesday:
- Japan: Bank of Japan interest rate decision
— CNBC’s Fred Imbert contributed to this report.