TOKYO — Asian stocks rose Wednesday after a rocky start following Beijing’s decision to cut a key interest rate to help stabilize gyrating financial markets and free up more funding to counter short liquidity.
By early afternoon, China’s benchmark Shanghai Composite Index — the source of much angst during these days of volatility — had climbed 2.6 percent to 3,041.03, on track for its first gain in five days.
Asian markets bobbed in and out of negative territory in early trading but appeared to regain buying momentum by early afternoon. Japan’s main Nikkei 225 stock index advanced 3.4 percent to 18,414.20, while Hong Kong’s Hang Seng index was up 0.6 percent at 21,534.25.
Elsewhere in Asia, Australian shares gained 0.7 percent to 5,170.90 and South Korea’s Kospi rose 2.4 percent to 1,891.63. Shares in rose in Taiwan and most of Southeast Asia but fell in New Zealand and Indonesia.
“A certain calm has descended on Asian markets today, allowing traders to catch a much-needed breath,” Chris Weston, chief market strategist at IG, said in a market note. But he added, “It still feels as though volatility can break out at any time.”