Australia stocks jump after smaller-than-expected rate hike; Asia markets rise

Pedestrians wearing face masks walk past a monitor displaying the Nikkei 225 index on February 25 in Tokyo, Japan.

Tomohiro Ohsumi | Getty Images

Asia-Pacific shares traded higher on Tuesday after stocks on Wall Street rallied overnight.

The Nikkei 225 in Japan rose 2.79% in early trade, and the Topix index was 2.99% higher. South Korea’s Kospi advanced 2.44% on its return to trade after a holiday. The Kosdaq added 2.86%.

MSCI’s broadest index of Asia-Pacific shares outside Japan gained 1.58%. In Australia, the S&P/ASX 200 jumped 3.63%. The Reserve Bank of Australia raised its benchmark interest rate by 25 basis points.

Markets in mainland China and Hong Kong are closed for a holiday.

The Dow Jones Industrial Average popped 765.38 points, or nearly 2.7%, to close at 29,490.89. The S&P 500 advanced about 2.6% to 3,678.43. The Nasdaq Composite added nearly 2.3% to end at 10,815.43.

It was the best day since June 24 for the Dow, and the S&P 500′s the best day since July 27.

— CNBC’s Tanaya Macheel and Samantha Subin contributed to this report.

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