Asian Markets Rise On Positive U.S. Data And G7 Assurance

Asian markets rose Wednesday amid positive economic data from the U.S. and the G7 finance ministers' decision to work closer together to tackle the euro zone economic crisis.

Japan's Nikkei Stock Average rose 1.81 percent, or 151.53 points, to 8533.53. Among the major gainers were Nippon Sheet Glass Co. (5.5 percent), Olympus Corp (2.5 percent) and Toyota Motor Corp. (0.6 percent).

The market sentiment was positive as the Institute for Supply Management's (ISM) non-manufacturing purchasing managers index Tuesday showed that the U.S. services sector expanded in May compared to the previous month, alleviating the concerns over the global economic condition for the time being. The ISM non-manufacturing PMI rose to 53.7 in May from 53.5 in April.

G7 finance ministers had a teleconference Tuesday in which they decided to work jointly to sort out the economic concerns in Spain and Greece. Investors were focusing on a European Central Bank meeting Wednesday that will discuss the factors affecting its interest rate decision and will deal with the overall economic outlook and inflation.

India's BSE Sensex gained 2.22 percent, or 355.17 points, to 16375.81, tracking positive cues from the other Asian markets. Leading the gain in Sensex were stocks of banks, technology and metal.

The market has improved with the rupee strengthening to a certain degree after falling to a record low 56.52 against the dollar last week. Investors are also showing confidence that the Reserve Bank of India (RBI) will intervene to ease the monetary policy, which will in turn boost the economic growth.

The Chinese Shanghai composite index fell marginally 0.10 percent or 2.36 points to 2309.55, and Hong Kong's Hang Seng rose 1.44 percent, or 262.54 points, to 18521.57. Adding to the market's confidence was the anticipation that the People's Bank of China would cut interest rates this month to regain its growth momentum. In Hong Kong, the stocks of property companies gained, led by Country Garden Holdings (5 percent) and Shimao (4.8 percent).