Asian Shares Climb On Strong Japan Data, RBNZ’s Easy Stance

Asian stocks rose in thin holiday trade on Wednesday as Iran-U.S. nuclear talks showed progress, Japan clocked a smaller-than-expected trade deficit in January, and Reserve Bank of New Zealand Governor Anna Breman reinforced the central bank’s “accommodative for some time” stance after holding interest rates at the lowest level in 3-1/2 years.

Regional trading volumes were light, with markets in China, Hong Kong and South Korea closed for the Lunar New Year holidays.

The U.S. dollar was broadly higher in Asian trade ahead of the release of key U.S. economic data as well as the minutes from the Fed’s January policy meeting.

Gold rose over 1 percent to trade above $4,900 an ounce, after having fallen more than 2 percent to hit a one-week low in the previous session.

Oil edged up slightly after falling about 2 percent to a two-week low in the previous session on signs of easing geopolitical tensions.

Japanese markets advanced after separate set of data showed Japan’s exports surged in January and business confidence improved in February, offering cautious relief for policymakers seeking to stabilize a stuttering economy.

In trade-related news, U.S. President Donald Trump announced the first $36 billion tranche of Japan’s $550 billion U.S. investment pledge tied to a tariff deal.

In a statement late Tuesday, U.S. commerce secretary, Howard Lutnick, said Japan would invest $36 billion in three projects: a natural gas plant in Ohio, a crude oil export facility along the U.S. Gulf Coast and a synthetic diamond manufacturing site in Georgia.

The Nikkei average climbed 1.02 percent to 57,143.84 while the broader Topix index closed up 1.21 percent at 3,807.25.

Australian markets closed higher for a third consecutive session after National Bank of Australia delivered robust first-quarter results, supported by solid performance in both business and home lending.

Shares of the country’s third-largest lender surged 4 percent to a record high while the benchmark S&P/ASX 200 rose 0.54 percent to 9,007. The broader All Ordinaries index settled 0.61 percent higher at 9,238.70.

Technology stocks also rallied while falling bullion prices on easing geopolitical tensions weighed on gold stocks.

BlueScope Steel added 2.6 percent after SGH Ltd and U.S.-based Steel Dynamics sweetened their A$15 billion takeover bid for the company.

Across the Tasman, New Zealand’s benchmark S&P/NZX-50 index jumped 1.65 percent to 13,247.02, snapping a three-day losing streak after the Reserve Bank of New Zealand left rates unchanged and indicated that normalization would be gradual.

Overnight, U.S. stocks fluctuated before ending marginally higher as financials gained ground, offsetting continued declines in software stocks on fears whether the marginal dollar spent on AI will generate the expected return.

Investors also reacted to weak homebuilder confidence data and comments from Trade Representative Jamieson Greer that adjustments could be made to broad tariffs on steel and aluminum.

The Dow, the tech-heavy Nasdaq Composite and the S&P 500 all ended up around 0.1 percent.