U.S. stock indices posted significant gains on Wednesday amid strong macroeconomic data and signs of stabilization. Seasonally adjusted durable goods orders rose by 2% in July compared to June. This is the second straight monthly increase and it suggests greater business confidence.

Meanwhile recent sharp declines in markets across the globe lowered expectations for a Fed rate hike in September, when the central bank meets next. Traders believe that there is a 25% chance of a rate increase next month. FOMC member Dudley said Wednesday that a rate increase in September seems to be less likely than a few weeks ago. Nevertheless Dudley said that he hopes that this event will take place this year.

The Dow Jones Industrial Average gained 619.91 points, or 4%, to 16,285.51. The S&P 500 rose 72.90 points, or 3.9%, to 1,940.51 (all of its 10 sectors gained). The Nasdaq Composite surged 191.05 points, or 4.2% to 4,697.54.

This morning in Asia Hong Kong Hang Seng advanced 2.30%, or 484.39 points, to 21,564.78. China Shanghai Composite Index rose 1.78%, or 51.98 points, to 2,979.27. The Nikkei added 0.69%, or 127.57 points, to 18,504.40.

Analysts say that Chinese stocks' gains are related to the government's efforts to restore investor trust.

Japanese stocks advanced as investors bought crashed shares. High market volatility is likely to persist in the coming months, because market participants are extra cautious about China's economy and prospects of Fed rates. A weaker yen also supported stocks.