Asia markets were higher in morning trade on Wednesday, taking early cues from overnight gains in Europe and US

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The Japanese benchmark index, Nikkei 225, traded up 2.58 percent, with the yen hovering at the 113 handle against the dollar, after falling overnight. The dollar/yen pair traded at 113.90 as of 8.49 a.m. HK/SIN time. Across the Korean Strait, the Kospi, which was off Tuesday for a public holiday, traded up 1.45 percent.

Australia's S&P/ASX 200 gained 1.32 percent in early trade, with the heavily-weighted financials sector up 2.18 percent, while energy sector was up 2.89 percent. But the gold sector slid 5.85 percent, following an overnight retreat in gold prices. US gold futures for April delivery settled down 0.3 percent at $1,230.80.

During Asian hours, spot gold traded near flat at $1,231.06 an ounce as of 0713 HK/SIN time. Gold miners Down Under were off by more than 3 percent each in early trade, with Newcrest shedding 6.89 percent.

"We have seen an immense risk-on rally over the past 24 hours of trade, and a lot of this does look to be underpinned by the stability that oil has found above the $30 level over the past two weeks," said Angus Nicholson, a market analyst at IG, in his morning note.

"China announced cuts to the RRR this week and markets are looking to the upcoming European Central Bank and Bank of Japan meetings for signs of further global monetary stimulus," Nicholson added.

However, investors will closely be watching the Chinese market when it comes online at 9.30 a.m. HK/SIN time, after ratings agency Moody's changed its outlook on China's credit rating Wednesday morning. In a note, Moody's said it has changed the outlook to negative from stable on China's government credit ratings, "while affirming the Aa3 long-term senior unsecured debt, issuer ratings, and (P)Aa3 senior unsecured shelf rating."

Moody's said the key drivers of the outlook revision are the "ongoing and prospective weakening of fiscal metrics," "continuing fall in reserve buffers due to capital outflows," and "uncertainty about the authorities' capacity to implement reforms."

US crude futures closed up 65 cents, or 2 percent, at $34.40 a barrel in overnight trade while global benchmark Brent settled up 24 cents, or 0.6 percent, at $36.81 a barrel.

Major US indexes also gained with the Dow Jones industrial average up 2.11 percent, S&P 500 adding 2.39 percent, and the Nasdaq composite gaining 2.89 percent.

First Published:Mar 2, 2016 7:51 AM IST