Asia stocks rise as relief rally builds after UK U-turn



Asia stocks nudged higher on Tuesday as the dramatic U-turn in British fiscal policy brightened investor sentiment, while the U.S. dollar took a breather at its lowest levels in more than a week as a revival in risk-taking lowered its appeal.

Britain's new finance minister Jeremy Hunt abandoned most of Prime Minister Liz Truss' economic plan that had led to a political maelstrom fueled by market turmoil.

Hunt's move led to Britain's government bonds, currency and shares soaring, while also lifting Wall Street.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.43 percent, while Japan's Nikkei was up 0.6 percent. S&P 500 futures and Nasdaq futures were both up 0.8 percent.

Chinese stocks opened higher with the benchmark Shanghai Composite Index up 0.32 percent and the Shenzhen Component Index rising by 0.55 percent.

In currency markets, the U.S. dollar retreated against most currencies overnight, with sterling subdued early on Tuesday after gaining 1.6 percent in the previous session.

The midpoint rate of the Chinese yuan strengthened 9 pips to 7.1086 against the U.S. dollar on Tuesday.

The yen touched a fresh 32-year low of 149.10 per dollar on Monday, not far off the psychological metric of 150. Investors have been watching out for any signs of further intervention by the Bank of Japan, with authorities repeatedly warning of a firm response to overly rapid yen declines.