Investing.com - Asian Pacific markets opened higher on Wednesday, as tech stocks surged on Wall Street overnight.
By 10:30 am AEST (12:30 am GMT), the S&P/ASX 200, KOSPI 200, and Nikkei 225 each saw increases of 0.4%, 1.8% and 2% respectively.
In the US, the stock indexes closed higher on Tuesday, ahead of a slew of major earnings reports. The NASDAQ Composite, rich in tech stocks, soared 1.6%, marking its second consecutive day of recovery from a recent sell-off. The S&P 500 and the Dow Jones Industrial Average also saw gains, rising by 1.2% and 0.7% respectively.
Investors were heartened by robust earnings reports from General Motors Company (NYSE:GM) and United Parcel Service Inc (NYSE:UPS). Despite a sharp drop in first-quarter profit and falling revenue, Tesla Inc (NASDAQ:TSLA) went up in post-market trading due to the company's announcement of accelerating the launch of new, affordable vehicle models.
Oil prices have dropped from their highs, and Treasury yields have stabilized, leading to a more optimistic outlook among investors. For the year, the S&P 500 has seen a 6.3% increase.
Brent crude, the international oil benchmark, closed at $88.42 a barrel, down from its recent high of $91.17. The benchmark 10-year Treasury note yield fell to 4.597%, from 4.622% on Monday.
The latest S&P Global PMI survey released on Tuesday showed the US private sector growing in April, albeit at a slower pace. This slower growth is seen as a positive sign for investors concerned about an overheating economy.
Overseas, European stocks experienced a climb, bolstered by strong earnings from Novartis and SAP.
In the commodity markets, Brent crude oil was up 1.7% to US$88.45 a barrel, while gold was down 0.2% at US$2,322.02.
In local bond markets, the yield on Australian 2 Year government bonds was down at 3.89% while the 10 Year yield was also down at 4.27%. US Treasury notes were down, with the 2 Year yield at 4.93% and the 10 Year yield at 4.60%.
The Australian dollar was 64.85 US cents, up from its previous close of 64.48. The US Dollar Index, which tracks the US dollar against 16 other currencies, was down at 100.17.
In Asia, Chinese shares closed mainly lower, dragged down by metal and oil stocks. But Hong Kong's Hang Seng Index closed 1.9% higher at 16828.93, tracking Wall Street's overnight gains. Japanese stocks also ended higher, led by gains in financial stocks and trading houses.
In Europe, stocks rose, with the pan-European Stoxx Europe 600 index up 1.1% at 507.79, the CAC 40 added 0.8% to 8,105.78, and the DAX 40 climbing 1.6% to 18,137.65. The FTSE 100 closed up 0.3% to finish at 8,044.81.