Jubilant global leads drive Asian markets higher

The unexpectedly encouraging US housing market report coupled with easing Euro-zone debt woes boosted sentiments across the Asian region on Wednesday. Most indices in the region are trading with strong gains in the range of 1-4% amid the tentative improvement in investors' risk appetite on the back of jubilant global leads. Sentiments got underpinned by overnight rally on Wall Street where stocks rallied around three percent as the series of upbeat US economic data added to expectations that the US will see a limited impact from Europe’s debt crisis. The housing starts surged by a more than anticipated 9.3% in November, showing significant improvement while business sentiment in Europe's biggest economy - Germany rose at the fastest rate since February in December, the second-straight month of gains, according to a closely-watched survey by Ifo. In addition, short-term financing costs for struggling Spain more than halved as banks lapped up debt at an auction.

The benchmark in Taiwan led the Asian pack from the front as it rallied over 4%, filliped after government there said that it will use the state fund to contain recent steep losses in stock market. Shares in South Korea too surged by close to three percent as investors focus shifted to the optimistic global leads from worries over potential impacts of North Korean leader Kim Jong-Il's death.

Shanghai Composite advanced 5.21 points or 0.24% to 2,221.14, Hang Seng surged 285.62 points or 1.58% to 18,365.82, Jakarta Composite climbed 33.89 points or 0.90% to 3,786.23, Nikkei 225 soared 110.08 points or 1.32% to 8,446.56, Straits Times 41jumped .75 points or 1.60% to 2,656.20, Seoul Composite spurted 53.00 points or 2.96% to 1,846.06 and Taiwan Weighted zoomed 277.70 points or 4.17% to 6,940.34.