Asian markets gain on Wall Street rally

Asian markets advanced strongly Wednesday after a rally in U.S. stocks, with Japanese shares breaking an eight-day losing streak, and benchmark indices in China, Hong Kong and India surging almost 5 percent.

Regional markets rose as investors were heartened by Wall Street's gains, which came amid easing concerns about the credit market and outlook for the U.S. economy, a key export market for Asia.

Japan's Nikkei 225 stock index rose 2.5 percent to 15,499.6 points, bouncing back from a 16-month low hit the previous day. Financial shares led the advance after the Dow Jones industrial average gained 2.5 percent in New York Wednesday.

Exporters like Toyota Motor Corp. also climbed as the dollar recovered some against the yen, rising to 111.20 yen from 110.69 yen late Tuesday in New York.

In Hong Kong, China's biggest mobile operator China Mobile shot up 9.2 percent on news it was in talks with Apple Inc. about bringing the iPhone to China. The territory's blue-chip Hang Seng Index soared 4.9 percent to 29,166.01.

Trade in Hong Kong has been volatile the past few weeks as investors have reacted to news about a plan to allow mainland Chinese to invest directly in Hong Kong, new listings of mainland companies and concerns over the American economy. The benchmark index plunged 3.9 percent Monday; a week before that it plummeted 5 percent.

Still, Hong Kong has been a stellar performer this year as investors view the market as a way to tap China's growth potential. Since the start of the year, the Hang Seng index has risen 46 percent.

On the Chinese mainland, the Shanghai Composite Index rose 4.9 percent to 5,412.7, ending a four-day losing streak. It was the index's largest one-day percentage gain in about three months.

Strong gains in Hong Kong and Taiwan stocks fueled bargain-hunting in China, though traders said apprehension over a possible interest rate hike over the weekend will likely limit further gains.

"The stock markets were in need of a technical rebound anyway after having fallen sharply recently. The rally in Hong Kong tracking Wall Street's gains overnight gave mainland investors an excuse to buy," said Zhang Gang, an analyst at Central China Securities.

Both Aluminum Corp. of China and Jiangxi Copper hit the 10 percent upside limit after having slumped 30 percent since the beginning of this month.

The regional rally extended also to India, where the Bombay Stock Exchange's benchmark index surged 894 points, or 4.7 percent, to close at 19,929 points.