Asian markets rise on upbeat US, European news

HONG KONG: Asian markets enjoyed some Christmas cheer Wednesday as strong US housing data and a successful bond issue by Spain added to an upbeat business and consumer outlook in Germany.

Tokyo was 1.40 percent higher by the break, Hong Kong gained 1.79 percent, Sydney added 2.09 percent, Shanghai rose 0.41 percent, Seoul jumped 2.70 percent and Taipei surged four percent.

Regional traders were given a strong cue by Wall Street, where the Dow surged 2.87 percent Tuesday - its strongest rally in four weeks - after official figures showed new home starts jumped 9.3 percent in November.

The rise is the biggest since April 2010 when tax credits, which have since expired, were driving sales.

The news from Europe and Washington boosted the euro on Tuesday in New York, where it rose to $1.3131 and 101.88 yen, up from the previous day's $1.2996 and 101.41 yen. In early Asian trade Wednesday it stood at $1.3112 and 102.09 yen.

The dollar bought 77.84 yen, compared with 77.89.

On the oil markets, New York's main contract, light sweet crude for delivery in February, advanced $1.04 to $98.28 a barrel and Brent North Sea crude for February was 43 cents higher at $107.16.

Gold was trading at $1,626.45 an ounce at 0330 GMT, against $1,604.25 an ounce late Tuesday.