Asian stocks follow Wall St higher after Fed ups bond buys

TOKYO (AP) — Asian shares rose Tuesday, cheered by fresh moves by the U.S. Federal Reserve to support markets battered by the coronavirus pandemic.

Japan's benchmark Nikkei 225 gained 3.2% to 22,212.62. South Korea's Kospi gained 4.5% to 2,123.35, while Australia's S&P/ASX 200 jumped 3.7% to 5,932.40. Hong Kong's Hang Seng added 2.6% to 24,403.92. The Shanghai Composite edged up 0.9% to 2,916.07.

“In case the generosity of the Fed was in any doubt, it is not. Global equity markets are recovering quickly,” after the Fed announcement, Stephen Innes, chief global markets strategist at AxiCorp, said in a report.

Market players were also awaiting a Bank of Japan policy board meeting that ended Tuesday without a change to its minus 0.1% benchmark interest rate and ultra-lax monetary stance.

However, the central bank did expand its “Special Program,” including purchases of commercial paper and corporate bonds and its lending programs for commercial banks from 75 trillion yen to 110 trillion yen ($690 billion to $1.02 trillion).

In a statement, the Bank of Japan said the economy “is likely to remain in a severe situation for the time being due to the impact of COVID-19," though it expects economic activity to resume gradually.

Overnight, the Fed's move earlier brightened sentiment on Wall Street, which rallied back from a sharp, early slump on Monday to notch modest gains.

The Fed announced in the afternoon that it will buy individual corporate bonds. as part of its previously announced program to keep lending markets running smoothly and allow big employers to get access to cash.

The move was the latest reminder the Fed is doing everything it can to help support markets, analysts said. Central banks have repeatedly come to the economy’s rescue over the...