Asia: Nikkei jumps on export boost as Abe advised to delay tax hike

Following the strong performance in the US and Europe, Japan's Nikkei and Hong Kong's Hang Seng were both strongly higher on Wednesday, though China's Shanghai composite was lower.

Japanese exports rose the most in seven months in September, further helping boost sentiment in Tokyo, providing a much needed vote of confidence to the central bank.

According to figures released by the country's Ministry of Finance, overseas shipments jumped by 6.9% year-on-year, more than the consensus estimate for a rise of 6.5%.

This supports the view that the economy is rebounding as Prime Minister Shinzo Abe weighs another increase in sales-tax.

Imports increased at a 6.2% clip in year-on-year terms, leaving a trade deficit of 958.3bn yen.

Abe's sales tax increase in April toppled Japan's economy into a deep quarterly slump and the prime minister is being told by advisers that the next sales tax hike should be delayed for at least two years.

Economics professor Etsuro Honda, a long-time Abe adviser told reporters in Tokyo that there was "a great danger from the next sales tax hike given the current situation where the positive effects of Abenomics and the negative impact of April's sales tax hike are offsetting each other", according to Reuters.

Honda said he had told the cabinet that the next tax hike "should be postponed by a year and a half until 1 April, 2017 to allow Japan to ensure deflation is definitively conquered.

Chinese equities in Shanghai were trading modestly lower following the gross domestic product (GDP) print on Tuesday that showed Chinese growth slowed down to 7.3% in the third quarter, from 7.5% in the second quarter.

Furthermore, it emerged overnight that China’s benchmark money-market rate fell for the sixth day in a row, indicating stimulus injections by the People's Bank of China have successfully inflated cash levels in the financial system.

The central bank has injected at least 250bn yuan ($41bn) into 11 major banks, according to local newswire Caixin.com, citing unidentified banking executives.