Asian markets got a hand up on Wednesday after strong trade data boosted expectations for U.S. growth while a lessening of sovereign strains in Europe lifted stocksthere to the highest since 2008.
Japan's Nikkei led the way with a rise of 1.1 percent, though some other regional markets remain out of favour as funds flock to assets in the western world.
The dollar climbed against the yen after the U.S. trade deficit shrank to its lowest in four years, thanks mainly to a renaissance in energy production, prompting analysts to revise up forecasts for economic growth.
Barclays, for one, doubled its estimate for last quarter and now predicts growth of 3 percent annualised.
The figures offered investors reassurance that the Federal Reserve's decision to taper its asset buying was justified by fundamentals. Minutes of the Fed's December meeting are due later on Wednesday and markets will be hoping for a clear commitment to keeping rates low for a long time to come.
Underlining the brighter mood were reports that the International Monetary Fund will raise its forecast for global growth in about three weeks, breaking a depressingly-long run of downgrades.
All of which helped MSCI's all-country world stock index hit its highest since mid-2008. Both the Dow and the S&P 500 rose 0.6 percent.
That was enough to give most Asian markets a break from recent selling pressure. MSCI's broadest index of Asia-Pacific shares outside Japan added 0.44 percent.
Stocks in Shanghai, Singapore and Taiwan all made ground.
Source: Reuters
