Most Asian stocks closed higher on Wednesday after sliding to 3-1/2-year lows the previous day on concerns over a weak outlook for commodities amid slowing economic growth in China. Commodity trading giant Glencore reassured investors about its financial strength and commodities such as oil and copper saw some reprieve after recent steep losses, helping bring some semblance of normality into financial markets.
Chinese stocks rose, although gains were capped ahead of the Golden Week holidays and PMI factory numbers, due on Thursday. The benchmark Shanghai Composite index rose 14.64 points or 0.48 percent to 3,052.78, with automakers rallying after China halved sales tax on small cars. Hong Kong's Hang Seng index gained 289.70 points or 1.41 percent to finish at 20,846.30.
Japanese shares rebounded sharply from the previous day's plunge, with a weaker yen and window-dressing buying at the end of the first half of fiscal 2015 underpinning investor sentiment. Weak data also boosted hopes that the Bank of Japan will be forced to unveil more stimulus to support economic recovery. Industrial output fell unexpectedly for the second straight month in August and retail sales showed no improvement from a month ago, while housing starts increased for the sixth consecutive month in August, offering some respite to investors worried about deflation and sluggish growth.
Investors await the Bank of Japan's Tankan survey due on Thursday and household spending figures out Friday to determine whether the central bank will step up monetary policy easing at its October 30 policy meeting. The benchmark Nikkei average rallied 457.31 points or 2.70 percent to 17,388.15 after losing over 4 percent the previous day. The broader Topix index of all first-section issues closed up 35.64 points or 2.59 percent at 1,411.16.
Among the prominent gainers, Shin-Etsu Chemical, Nissan Motor, KDDI Corp and Mazda Motor climbed 5-6 percent. Toshiba Corp rallied 2.9 percent after entering into a 400 billion yen or $3.3 billion commitment line agreement with its main financing banks. Honda Motor rose 1.8 percent and Toyota jumped 3.8 percent even as industry data showed automobile production in Japan declined for the fourteenth consecutive month in August. Japan Tobacco slumped 6.7 percent, extending Tuesday's 4 percent loss, after agreeing to buy $5bn of cigarette assets from U.S. rival Reynolds American.
Australian shares rebounded from a two-year low hit in the previous session, with banks and miners pacing the gainers. The benchmark S&P/ASX 200 index closed up 103.2 points or 2.1 percent at 5,021.6, marking its biggest single-day gain since August 25. The broader All Ordinaries index climbed 100.5 points or 2.03 percent to close at 5,058.6.
BHP Billiton rallied 2.8 percent and Fortescue Metals Group soared 9 percent after commodities trader and mining giant Glencore assured markets its business remained robust. Rio Tinto climbed 4.5 percent after the company said it had agreed to sell its 40 percent stake in the Bengalla open cut coal mine in New South Wales to New Hope Corp for $865 million. Gold miner Newcrest Mining rose 1.2 percent despite gold extending declines for a third consecutive session overnight.
The big four banks gained 2-4 percent. AGL Energy fell 1.6 percent after the energy provider released its earnings guidance for the current financial year. Oil Search lost 1.1 percent and Santos slumped 7 percent while Woodside Petroleum advanced 2.7 percent. Internet-services provider TPG Telecom jumped 7.1 percent after it formed a $1 billion partnership with Vodafone Hutchison.
On the economic front, the total number of building approvals slumped a seasonally adjusted 6.9 percent in August, official figures showed, missing expectations for a 2 percent decline. On an annual basis, approvals were up 5.1 percent. Private sector credit data beat expectations, with housing sector credit rising 0.6 percent in August from the previous month.
Seoul shares reversed early losses as foreign investors turned net buyers after five consecutive days of selling. The benchmark Kospi average closed up 19.96 points or 1.03 percent to close at 1,962.81 after falling as much as 1.4 percent early in the day. Market heavyweight Samsung Electronics rose 2 percent and cosmetic maker AmorePacific soared 5.1 percent ahead of China's week-long National Day holidays, while shipbuilders and constriction companies lost ground. The South Korean won closed higher by 9.40 won at 1,185.30 against the greenback, snapping a five-day losing streak.
New Zealand shares fell modestly as a host of companies traded ex-dividend. The benchmark NZX-50 index dropped 19.06 points or 0.34 percent to 5,593.36, with Auckland International Airport, Skellerup Holdings and Genesis Energy falling 3-6 percent. Z Energy asked for a trading halt before Infratil and the New Zealand Superannuation Fund begin selling their stake in a coordinated sale.
In economic releases, the total number of building permits issued in New Zealand slid a seasonally adjusted 4.9 percent in August from the previous month, Statistics New Zealand said.
Elsewhere, India's Sensex was up more than 1 percent, extending the previous session's rebound after the country's central bank surprised markets with a bigger-than-expected 50 basis points cut in the repo rate and said it would remain accommodative to the extent possible.
Indonesia's Jakarta Composite index was gaining 0.8 percent, Malaysia's KLSE Composite was rallying 1 percent and the Taiwan Weighted added 0.6 percent, while Singapore's Straits Times index was marginally lower. Malaysia's producer prices continued to decline in August, but at a slower pace than in the prior month, official data showed.
U.S. stocks fluctuated before closing mixed overnight after steep losses in the previous session on global growth worries and uncertainty surrounding the Fed's first rate rise. Commodities recovered slightly and economic reports on house prices and consumer confidence were fairly positive, helping spur some bargain hunting in beaten-down stocks. The Dow rose 0.3 percent and the S&P 500 inched up 0.1 percent to snap a five-day losing streak, while the tech-heavy Nasdaq slid 0.6 percent to a one-month closing low.
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