SINGAPORE — Shares in the Asia-Pacific jumped Wednesday after a sharp bounce in U.S. stocks overnight.

The Nikkei 225 in Japan rose 2.13% and the Topix index gained 1.69%.

Hong Kong’s Hang Seng index advanced 1.66%, and the Hang Seng Tech index was up 2.2%.

South Korea’s Kospi rose 1.05% and the Kosdaq was 1.34% higher.

In Australia, the S&P/ASX 200 rose 1.61%.

Reserve Bank of Australia Governor Philip Lowe on Wednesday said inflation for the June quarter to be released next week will show a further step-up, and there needs to be a path back to 2% to 3% inflation.

Prices rose 5.1% in the March quarter. In his speech, Lowe also said the neutral nominal rate is at least 2.5%, whereas current rates are at 1.35%.

Markets in Mainland China ticked higher. The Shanghai Composite gained 0.35%, and the Shenzhen Component rose 0.62%.

China kept its one-year and five-year loan prime rates unchanged at 3.7% and 4.45% Wednesday.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1.2%.

U.S. stocks rallied Tuesday stateside following strong earnings reports.

The Dow Jones Industrial Average popped 754.44 points, or 2.43%, to 31,827.05. The S&P 500 jumped 2.76% to 3,936.69 and the Nasdaq Composite rose 3.11% to 11,713.15.

In company news, Japanese automaker Toyota said its production in August would be around 700,000 units, lower than the previously announced figure of 850,000 units, due to a parts shortage related to Covid disruptions.

Toyota shares were 0.53% higher on Wednesday.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 106.577, after falling sharply.

The Japanese yen traded at 137.98 per dollar, stronger than the levels seen last week. The Australian dollar was at $0.6897, strengthening from earlier this week.

Bitcoin continued to gain ground, sitting above $23,000 at $23,170.30 at 9.29 p.m. ET Tuesday.

U.S. crude futures dropped 0.95% to $103.23 per barrel, while Brent crude fell 0.43% to $106.89 per barrel. Both benchmarks settled 1% higher in the previous session.