HONG KONG: Asian stocks jumped Wednesday after the Dow closed at a two-and-a-half-year high on the back of data indicating the US economy is gaining strength while easing tensions in Egypt improved sentiment.
Tokyo's Nikkei surged 1.78 percent, or 182.86 points, to end at 10,457.36 and Sydney closed 0.93 percent, or 44.4 points, higher at 4,796.5.
Hong Kong ended 1.81 percent, or 426.01 points, higher at 23,908.96.
The Hong Kong market was open for just half a day due to the Lunar New Year holidays while Shanghai, Seoul and Taipei were closed.
Regional markets were bullish from the opening after the Dow on Tuesday rose 1.25 percent to finish above the psychologically key 12,000-point mark for the first time since June 2008.
The broader S&P 500 index jumped 1.67 percent and the tech-heavy Nasdaq rose 1.89 percent.
US dealers sent the markets surging on the back of economic data showing manufacturing was growing at its fastest rate since 2004 and car sales were also strong, along with solid earnings from leading firms including Pfizer and UPS.
Fears about unrest in Egypt eased late Tuesday after President Hosni Mubarak said he would step down after elections.
The announcement pushed dealers back into stocks after a sell-off earlier this week caused by tensions in the region.
"There's been a global alignment in terms of positive economic data and also some good corporate reporting out of the US," said Macquarie Private Wealth client adviser Marcus Droga in Sydney.
"Obviously the Middle East is still a potential concern, but that's cooled for the time being," he told Dow Jones Newswires.
Eyes will be on the release of key US jobs figures late Friday, which will give a better insight into the state of the world's biggest economy.
Despite the news out of Cairo, oil traders were still on edge and crude remained above $100 a barrel.
Brent North Sea crude, for delivery in March, rose 16 cents to $101.90, while New York's main contract, light sweet crude for March, was down two cents at $90.75.
On forex markets, the euro benefited from the increased risk appetite as well as expectations the European Central Bank will raise interest rates soon as European countries begin to struggle with inflation.
The euro bought $1.3850 in early Tokyo trade -- a three month high -- up from $1.3831 in New York late Tuesday, while it was trading at 112.85 yen compared with 112.47.
The dollar stood at 81.47 yen, up from 81.33 yen in New York.
Gold closed at $1,340.70-$1,341.70 an ounce in Hong Kong, up from Tuesday's close of $1,338.50-$1,339.50.
In other markets:
-- Mumbai rose 0.38 percent, or 68.4 points, to 18,090.62 on bargain-hunting after five straight days of losses, as tensions around Egypt appeared to ease and Wall Street rebounded.
The recovery came despite concern that rising oil prices could fuel already severe inflationary pressure in India.
India's leading vehicle maker Tata Motors rose 3.93 percent, or 42.05 rupees, to 1,110.85, while the largest private firm Reliance Industries rose 2.88 percent, or 25.75 rupees, to 921.4.
India's largest mobile phone firm Bharti Airtel rose 2.75 percent, or 8.65 rupees, to 323.65 even as it announced a 41 percent dip in quarterly net profit.
-- Singapore rose 0.83 percent, or 26.38 points, to 3,211.12.
Keppel Corp was up 0.51 percent at Sg$11.80 and Singapore Telecom was up 1.31 percent at Sg$3.10. The market was closed for half a day for a public holiday.
-- Manila closed 1.58 percent, or 60.58 points, higher at 3,891.07.
Top-traded Banco de Oro was up 0.91 percent at 50.05 pesos and Aboitiz Power rose 0.72 percent to 27.80 pesos while Manila Electric added 3.88 percent to 230 pesos.
-- Wellington gained 0.11 percent, or 3.84 points, to close at 3,352.30.
Fletcher Building added 1.5 percent to NZ$7.90, Mainfreight rose 1.7 percent to NZ$8.40 but Telecom slid 1.3 percent to NZ$2.22.
-- Kuala Lumpur rose 0.78 percent, or 11.88 points, to 1,531.82.
Genting rose 6.4 percent to 11.34 ringgit, MMC Corp added 2.5 percent to 2.90 and Malaysian Airline System gained 2.0 percent to 2.05.
-- Jakarta rose 1.11 percent, or 38.32 points, to 3,480.82 as foreign funds bought select consumer and banking stocks on hopes for strong 2010 earnings.
Bank Central Asia rose 3.5 percent to 5,850 rupiah, while cement maker Gresik gained 2.5 percent to 8,200 rupiah.
-- Bangkok rose 1.89 percent, or 18.15 points, to close at 977.84.
Banpu jumped 18.00 baht to 746.00 and PTT Plc gained 6.00 baht to 344.00.
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