On Wednesday, Australian shares soared, while Hong Kong and Singapore shares struggled to maintain support. Any of Asia's other big markets are shut for the day.

The benchmark ASX 200 rate increased 0.39 % to 7,095.80, while the highly weighted financial information subindex gained 0.57 %. Energy and materials gained by 0.21 % and 0.78 %, respectively, as large miners and oil stocks remained mostly flat.

Taiwan's Taiex gave up profits to finish 0.53 % lower at 16,843.44, while Hong Kong's Hang Seng index fell 0.49 % to 28,417.98.

In afternoon trading, Singapore's Straits Times index fell 0.83 %. The city-state announced Tuesday that it would intensify social restrictions after discovering the Covid-19 version inside its territory, which experts believe is partly responsible for India's alarming increase in cases.

The benchmark Nifty 50 index climbed 0.69 %, while the Sensex gained 0.74 %. Bank stocks rose just after the Reserve Bank of India revealed plans to increase loans in the country's coronavirus-ravaged economy.

The Asian session on Wednesday comes after an overnight discussion on Wall Street in which the S&P 500 plunged despite trading in Big Tech and other high-growth shares, while the Nasdaq Composite had the worse day since March.

“Equities exchanged strategically despite losses in technology stocks and Yellen's remarks that the Fed would have to boost interest rates slightly to keep the economy from burning up,” ANZ Research analyst wrote in a morning statement.

“There seems to be some uncertainty that the best of the earnings recovery in the United States could have already arisen after the poorer April ISM manufacturing survey. The truth is that data cannot increase at the same rate it did in March and April, but fundamental development is growing quickly,” they said.

During public holidays, markets here on the Chinese mainland and in Japan stay closed. Markets in South Korea are now closed.

U.S. Treasury Secretary Janet Yellen further said Tuesday that interest rates will have to increase to keep a cap on the booming economic growth of the U.S. economy which has been sparked in part by trillions of dollars in government stimulus spending.

Afterward, the former Fed chair softened her remarks on the need for higher costs, indicating she respected the Federal Reserve's independence and was not attempting to manipulate decision-making therein.

Despite an economy rising at the highest rate in nearly 40 years, the Fed has held short-term interest rates close to zero for more than a year.

Currencies and oil

Inside the whole currency market, the dollar index, which tests the greenback versus a basket of its counterparts, rose 0.13 % to 91.406 after falling to a low of about 91.173 earlier in the day.

As per Kim Mundy, senior economist, and currency analyst at the Commonwealth Bank of Australia, the dollar “momentarily jumped higher on Yellen's remarks.”

“Yellen's remarks did not prescribe a timetable for rate increases, and she explained her remarks by saying she wasn't advocating FOMC price increases. We continue to expect the FOMC to be vigilant as economic data enhances,” Mundy said in a morning note.

The Japanese yen was trading at 109.41 per dollar, while the Australian dollar gained 0.13 % to $0.7715.

During Asian trading hours on Wednesday, oil prices extended their profits. Crude futures in the United States were up 1.1 % to $66.41 a barrel, while global standard Brent was rising 1.19 % to $69.70.

According to ANZ Research analysts, prices increased overnight as optimism over strong demand increases amid relaxing constraints in Europe and the United States, which is mitigating India's weakness.

“The sector will be looking for evidence of higher production from OPEC as it helps ease supply restrictions,” analysts said.