Asian shares have rebounded from their retreat a day earlier, tracking Wall Street's recovery from the Federal Reserve's reminder it will eventually provide less support to markets.
Japan's benchmark Nikkei 225 jumped 2.8% in morning trading to 28,785.24. Australia's S&P/ASX 200 added 1.4% to 7,336.30. South Korea's Kospi rose 0.6% to 3,260.11. pgslot Hong Kong's Hang Seng edged up 0.1% to 28,522.78, while the Shanghai Composite gained 0.9% to 3,559.32.
Although the latest bout of jitters over a possible easing of help from the Federal Reserve and other central banks appears to have passed, analysts said rising coronavirus cases in the region remained a concern.
“Much of the region is dealing with renewed waves of COVID-19 infections. These waves, especially in the case of India, Indonesia and some other countries in Southeast Asia, are the most severe yet,” said Venkateswaran Lavanya at Mizuho Bank in Singapore.
On Monday, the S&P 500 snapped 1.4% higher, to 4,224.79, recovering nearly three-quarters of its worst weekly loss since February. Oil producers, banks and other companies that were hit particularly hard last week led the way.
The Dow Jones Industrial Average gained 1.8% to 33,876.97 and the Nasdaq composite rose 0.8%, to 14,141.48.
Investors are still figuring all the ramifications of the Fed's forecast that may start raising short-term interest rates by late 2023. That's earlier than previously thought. The Fed also began talks about slowing programs meant to keep longer-term rates low, an acknowledgment of the strengthening economy and threat of higher inflation.
The market's immediate reaction to last week's Fed news was to send stocks lower and interest rates higher. Higher rates would make stock prices, which have been climbing faster than corporate profits, look even more expensive than they do already.