In This Article:
* Asian stock markets: https://tmsnrt.rs/2zpUAr4
* Nikkei up more than 1 pct, but China stocks lag
* Netflix surges on strong results, lifts FANG sector
* Dollar mixed as risk sentiment favours emerging markets
By Wayne Cole
SYDNEY, Oct 17 (Reuters) - Asian equities got some welcome relief on Wednesday after upbeat U.S. earnings reports drove a rebound on Wall Street and helped restore a little faith in emerging market stocks and currencies.
Japan's Nikkei galloped out of the gates with a rise of 1.7 percent, but still has a way to go to recoup the past week's losses.
"The Nikkei appears to have bottomed out," said Soichiro Monji, senior economist at Daiwa SB Investments.
"The latest tumble was not driven by convincing factors - the market may have needed to adjust after its sharp rally and upcoming corporate earnings should provide evidence of solid economic fundamentals."
MSCI's broadest index of Asia-Pacific shares outside Japan added 0.7 percent and South Korea 1.2 percent, while spreadbetters pointed to opening gains for the major European bourses.
Chinese blue chips, however, lagged with a gain of only 0.2 percent and threatened to sour the mood.
On Wall Street, the three major indexes had tallied their biggest one-day percentage gains since March. The Dow jumped 2.17 percent, while the S&P 500 climbed 2.15 percent and the Nasdaq 2.89 percent.
Netflix Inc shot 12 percent higher after the close as its results far outstripped market expectations with 7 million streaming customers added.
The blockbuster outcome sent shares of Alphabet Inc , Facebook Inc and Amazon.com Inc up about 1 percent in extended trade.
The four make up the so-called FANG group of high-growth companies that in recent months has lost some of its momentum following market-leading gains in recent years.
"Most have blamed last week's volatility spike on the systematic funds liquidating positions, as the short volatility trade unwound rapidly," said Chris Weston, head of research at broker Peppertsone.
"This, in turn, has allowed traders to re-focus away from the macro towards micro, and, predictably, solid U.S. corporate earnings."
The U.S. economic news was also robust, notably a sharp rise in job openings to a fresh all-time high.
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All this cheer favoured beaten-down currencies in emerging markets while taking some steam out of the safe-haven yen. The MSCI Emerging Market Currency Index rose for a third straight session.
The latest survey of global fund managers by BofA Merrill Lynch found they saw emerging market currencies as the most undervalued ever against the U.S. dollar.