Overnight Markets: US stocks rebound on strong corporate earnings

Meanwhile, President Barack Obama urged Congress to approve a small package of spending cuts and tax reforms. Republican leaders quickly rejected the plan, but investors are expecting an agreement.

In Asia, shares gained on Wednesday led by Japan’s Nikkei 225 Stock Average as Toyota Motor Corp. increased its profit forecast and the yen weakened, boosting the earnings outlook for exporters.

The MSCI Asia Pacific Index gained 1.1% to 133 as of 12:25 p.m. in Tokyo. Japan’s Nikkei 225 climbed 3.1%, poised for the highest close since September 2008.

Hong Kong’s Hang Seng Index rose 0.4% and China’s Shanghai Composite slipped 0.1%. Australia’s S&P/ASX 200 Index advanced 0.8% even as a report showed the nation’s retail sales unexpectedly fell for a third month in December. South Korea’s Kospi Index and Singapore’s Straits Times Index gained less than 0.1%. Taiwan’s Taiex Index rose 0.5%.