Key Asian markets posted strong gains in midday trade Feb. 7, partially recovering from their previous-day plunge, after U.S. stocks staged a late rebound on Feb. 6.
Japan's Nikkei 225 Index was up 1.12% as of 12:00 a.m. ET, and looked set to regain some of its losses after closing 4.73% lower on Feb. 6.
Hong Kong's Hang Seng Index was up 1.25% as of 12:00 a.m. ET, after a previous 5.02% fall.
Meanwhile, China's Shanghai Composite Index continued to fall, down 0.78% as of 12:02 a.m. ET. The index on Feb. 6 registered its largest one-day fall of 3.35% since February 2016.
The recovery across Asian markets followed a rebound in U.S. stocks, which closed in positive territory Feb. 6. after posting losses in early trade. Equity markets had fallen in the previous two days as fears of inflation and rate hikes induced a global selloff, but analysts said fundamentals remained positive.
"The pullback may be considered a healthy correction," Bloomberg News quoted Candice Bangsund, a fund manager at Fiera Capital Corp. based in Montreal.
"The favorable conditions that have underpinned the stock market rally over the last year remain largely intact at this time — the global expansion continues and corporate earnings remain in acceleration mode," she added.
