Asian stocks rebounded Wednesday after equities in the U.S. roared back in a late-day rally, as investors returned to buying into weakness. “The only surprise about the current markets volatility is that it hasn’t happened sooner,” said Clive Bates, chief investment officer for emerging-market stocks in Asia at Gerhard Moser Investment Capital Holdings Investment. Stocks in Japan NIK, +3.06% and Hong Kong HSI, +1.20% , which saw some of the biggest declines in Asia on Tuesday, led the charge with indexes up about 3%.
Demand for the yen eased and that gave a lift to the Nikkei, which slumped 4.7% Tuesday to fall into correction territory with a 10% drop from a high reached two weeks ago. The U.S. dollar JPYUSD, +0.214041% was last buying ¥109.50, compared with ¥108.88 at the end of Japanese stock trading Tuesday. Japan’s Shin-Etsu Chemical 4063, +7.00% and Toyota Motor 7203, +5.00% jumped 7% and 5%, respectively, after releasing quarterly results late Tuesday.