Investing.com - Asian stock markets soared on Wednesday, setting the stage for a global equity rally, amid hopes for further stimulus from China and Japan.
1. Nikkei enjoys largest gain in seven years
Japan's blue-chip Nikkei stock index soared 7.7%, the biggest one-day gain since October 2008, after Prime Minister Shinzo Abe reiterated a pledge to lower the corporate tax rate.
In the previous session, the Nikkei lost 2.4% and wiped out its year-to-date gain.
2. Chinese stocks rise as government plans further stimulus
The Shanghai Composite tacked on 2.3%, one day after posting a late rally to end up 3%, after China's finance ministry proposed a series of fresh measures to stimulate economic growth.
Hopes for more stimulus measures from the Chinese government increased after data on Tuesday showed that China's imports shrank far more than expected in August, falling for the 10th straight month.
3. European markets rise for third straight session
European stock markets rose sharply on Wednesday, on track to post its third consecutive daily gain, as speculation surrounding possible stimulus measures in China boosted risk appetite.
Germany's DAX, France’s CAC 40 and London's FTSE 100 were all up almost 2% in afternoon trade.
European stock markets had their best day in over a week on Tuesday on news Germany's imports and exports hit record highs in value terms in July.
4. Dow futures rally 200 points as Asia soars
U.S. stock futures pointed to strong gains at the open on Wednesday, with Dow futures rising by triple digits, as sentiment improved amid a global stock market rally.
During early morning hours in New York, the blue-chip Dow futures surged 191 points, or 1.16%, the S&P 500 futures jumped 21 points, or 1.05%, while the Nasdaq 100 futures indicated a gain of 55 points, or 1.26%.
On Tuesday, Wall Street rose 2%, inspired by a China-fueled rebound in global equities.
5. Bank of Canada policy meeting
The Bank of Canada's latest interest rate decision is due at 10:00AM ET, on Wednesday. BOC Governor Stephen Poloz is widely expected to keep rates unchanged at 0.50%, in light of recently upbeat data after already cutting twice this year.