Asia stocks rebounded firmly Wednesday as investors piled cash back into cheap shares amid continued U.S. dollar strength.
Japan's Nikkei 225 touched a nine-month high of 17,905 in intra-day trading before closing 230 points higher at 17,865 as a weaker yen made domestic stocks more attractive to overseas buyers. The broadest measure of Asia stocks outside of Japan, the MSCI Asia Index, lifted from 4-month lows amid a pause in the global bond sell-off which has raised concerns about rapidly rising inflation and pulled money from Asian and other emerging market shares.
The positive tone has investors calling European markets higher at the open, with financial bookmakers expecting a 22 point gain at the bell for London's FTSE 100, a 26 point advance for the DAX performance index and a 12 point bump for France's CAC-40.
U.S. 10-year Treasury bond yields fell by around 2 basis points to 2.23% in Asia trading while the dollar was little changed against a basket of global currencies at 99.91. Benchmark 10-year Japanese government bond yields, which the central bank has said it would cap at 0%, traded at 0.035% overnight, the highest level since February 18.
The pound added about 0.2% in overnight trading and was marked at 1.2481 against the greenback at the end of the Asia session, while the European single currency added about 0.3% to its value against the dollar to trade at 1.0751.
Another notable currency move in the overnight session came from China, where the country's central bank lowered its 2% trading band for the renminbi for the ninth consecutive session, pegging it at 6.8592 against the U.S. dollar, the lowest since August 2008.
Crude oil prices, which surged more than 3.5% Tuesday as traders bet on an agreement on production cuts at the November 30 OPEC meeting in Vienna, extended gains in Asia trading, with Nymex light sweet crude prices adding 0.51% to $46.57 and Brent 0.6% higher at $47.80.