According to a report from the Wall Street Journal " asian markets rose early on Wednesday, with Japanese stocks leading the region higher, after a hefty interest rate hike in Turkey restored confidence in emerging markets".
"The Turkish lira surged after the country's central bank yanked the cost of borrowing higher in an attempt to shore up the currency, which has weakened sharply in recent sessions. The overnight lending rate was raised to 12% from 7.75%.
The U.S. dollar was last trading at 2.1784 Turkish lira — a 3.3% fall from the 2.2520 lira level just before the announcement, and significantly below the 2.39 lira peak that the greenback hit on Monday".
"The move gave a broad boost to global sentiment, which has taken a battering in recent sessions, as a selloff in emerging markets spread to developed economies. The easing tension led to a softer yen, a currency that had benefited from safe-haven buying as other assets were sold.
The dollar was last at ¥103.16, compared with ¥102.94 late Tuesday in New York.
The weaker local currency gave Japanese stocks a boost, with the Nikkei up 1.5% in early trade.
Away from Japan, markets were also recovering from their recent declines, with South Korea's Kospi up 0.7% and Australia's S&P/ASX 200 0.4% higher.
There are still potential hurdles for emerging markets, as the Federal Reserve is scheduled to finish its policy meeting later in the global day. Investors will be looking to see whether the central bank will take further steps to roll back its bond-buying program".
