Asian Equities Rebound after Wall Street’s Rally Overnight, UK Scraps Tax Cuts

Stocks in Asia rebounded on Tuesday after Wall Street’s rally overnight and the U.K. reversed more of its unfunded tax cuts, boosting global market sentiment.

As of 9.29 a.m. Thai time, the S&P/ASX 200 in Australia gained 1.32%, leading gains in the wider region. 

The Hang Seng index in Hong Kong rose 0.26%. The Nikkei 225 was 0.65% up, while South Korea’s Kospi climbed 0.30%.

In mainland China, the Shanghai Composite dropped 0.20%.

According to an updated calendar issued on the website of the National Bureau of Statistics, China has postponed the reporting of gross domestic product figures as well as a slew of other economic releases for the third quarter. This unprecedented action took place during the 20th National Congress of the Communist Party.

U.S. stock markets rose sharply overnight as several companies reported stronger-than-expected quarterly earnings.

At the market’s conclusion, the Dow Jones Industrial Average rose 550.99 points, or 1.86%, to 30,185.82. The S&P 500 popped 2.65% to 3,677.95. The tech-focused Nasdaq Composite index ended the day up 3.43% at 10,675.80, its highest close since July.

On Monday, U.K. Finance Minister Jeremy Hunt stated that almost all of his predecessor’s unpopular tax changes would be revoked. The major U-turn includes reversing the cut in the lowest income tax rate from 20% to 19%, as well as dividend tax rate reductions, the reversal of off-payroll working reforms, VAT claim-backs for tourists, and the freezing of alcohol duty rates.

The statement was well received by the market, and the sterling rose by 1% against the dollar immediately afterwards.