Asian markets have resumed their upward trend following another record-breaking close on Wall Street, where strong economic data buoyed sentiment as investors returned from a long weekend.
The bullish sentiment provided the US dollar with support, while the euro remains under pressure on expectations the European Central Bank will announce fresh measures to combat deflation fears.
Tokyo on Wednesday rose 0.24 per cent, or 34.43 points, to finish at 14,670.95, Seoul gained 0.97 per cent, or 19.43 points, to 2,017.06 and Sydney added 0.28 per cent, or 15.5 points, to 5,527.2.
Shanghai climbed 0.77 per cent, or 15.66 points, to 2,050.23 and Hong Kong added 0.59 per cent, or 135.73 points, to 23,080.03.
After the Memorial Day long weekend, US shares rallied on Tuesday in response to more data showing the economy is getting back on track.
Independent business research group The Conference Board said its index of consumer confidence rose to 83.0 in May from 81.7 last month. It is also well up from 74.3 a year ago.
Home prices in the US rose 0.9 per cent in March after a February stall caused by severe winter weather, the S&P/Case-Shiller index showed. And the Commerce Department said new orders for US durable goods rose 0.8 per cent in April, a third consecutive pick-up and better than forecasts for a 1.3 per cent fall.
The S&P 500 climbed 0.60 per cent on Tuesday, hitting another record after breaking the 1,900 level for the first time Friday.
The Dow added 0.42 per cent, while the Nasdaq surged 1.22 per cent.
Eyes are now on the release of revised first-quarter economic growth data on Friday.
In foreign exchange trade, the US dollar sat at Y101.90, compared with Y101.96 in New York on Tuesday. While the greenback is unable to break the Y102 barrier it has been supported by the upbeat outlook on the global economy, which has seen investors embrace more risk and move away from the safe-haven Japanese unit.
The euro bought $US1.3624 and Y138.78 against $US1.3634 and Y139.03.
The single currency has slipped steadily for three weeks as dealers bet the ECB will move to loosen monetary policy when its board meets on June 5.
Nobel laureate and economist Paul Krugman urged the ECB on Tuesday to raise its 2.0 inflation target.
"I am well aware that any proposal for a rise in the inflation target is greeted with extreme scepticism by central bankers," Krugman said at an ECB forum on monetary policy in Sintra, near the Portuguese capital Lisbon.
"If the 2 per cent target was defendable in the 1990s, it's likely not to be adequate in the future," he said.
Oil prices were mixed. The US benchmark, West Texas Intermediate for delivery in July, rose 12 US cents to $US104.23 in afternoon trade. Brent North Sea crude for July gained 21 US cents to $US110.23 per barrel.
Gold fetched $US1,264.85 an ounce at 1800 AEST, compared with $US1,283.05 late on Tuesday.
In other markets:
- Taipei put on 0.73 per cent, or 66.42 points, to 9,121.71.
Hon Hai edged up 0.65 per cent to $Tw93.4 while Taiwan Semiconductor Manufacturing Co was 0.4 per cent higher at $Tw124.0.
- Wellington rose 0.69 per cent, or 35.61 points, to 5,181.46.
Fletcher Building was up 0.55 per cent at $NZ9.18 and Air New Zealand added 0.23 per cent to $NZ2.165.
- Manila rose 0.11 per cent, or 7.62 points, to 6,787.88.
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