Asian stocks rebound as oil hits two-year high

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Stocks across Asia-Pacific jumped following a rebound on Wall Street and oil rose to its highest level in two years as investors were reassured by signals that the Federal Reserve would continue to support the economic recovery from the coronavirus pandemic.

In afternoon Asia trading on Tuesday, Japan’s Topix rose 3.1 per cent and Australia’s S&P/ASX 200 climbed 1.8 per cent. India’s benchmark Sensex index rose as much as 0.8 per cent to a record, while China’s CSI 300 index of Shanghai- and Shenzhen-listed stocks climbed 0.5 per cent.

The moves followed a bounce for US stocks on Monday, with the S&P 500 closing up 1.4 per cent. US shares tumbled last week after the Federal Reserve pivoted to a more hawkish tone, prompting fears that interest rate rises could derail the global economic recovery.

But market sentiment got a boost on Monday from more dovish commentary from Fed officials including chair Jay Powell, who in prepared…

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