Asian Stocks Advance Amid China?s Growth Pledge

Asian stock markets advanced for the second day Tuesday as China's commitment to stimulate growth in the world's second largest economy and signs of cooperation between German and French leaders buoyed sentiment.

Japan's benchmark Nikkei gained 1.04 percent or 90.02 points to 8,723.91, South Korea's KOSPI surged 1.64 percent or 29.34 points to 1,828.47 and Hong Kong's Hang Seng gained 1.29 percent while Indian benchmark BSE Sensex and China's Shanghai index gained 0.70 percent and 0.62 percent respectively.

Global markets rebounded Monday from their biggest fall in six months after Chinese Premier Wen Jiabao pledged to adopt a proactive fiscal policy and a prudent monetary policy to bolster the world's second largest economy. Market analysts' interpreted Wen's comments as a clear signal of further growth in the world's second-biggest economy.

Meanwhile, France's new finance minister Pierre Moscovici and his German counterpart Wolfgang Schaeuble said in a joint news conference after a meeting in Berlin on Monday that they would do everything they could to keep Greece in the euro zone.

Over the weekend, leaders of G8 nations at the Camp David summit also expressed their desire to keep Greece in the euro zone and vowed to address the issue of financial market turmoil and stagnant economic growth.

As Chinese slowdown and 'Grexit' risk have been the two main drags on sentiment, hopes for some sort of improvement on both fronts trigger a temporary rebound. However, ultimately, concrete evidence of things moving in the right direction will be needed to maintain the gains, said a note from Credit Agricole.

Automaker shares gained in Japan. Toyota Motors gained 2.5 percent and Honda Motor advanced 1.91 percent while Nissan Motor surged 4.31 percent.

Elsewhere, technology stocks rallied across the region. Panasonic Corp. gained 1.69 percent and Advantest Corp. advanced 2.79 percent in Tokyo, while Samsung Electronics and LG Electronics gained 2.07 percent and 7.47 percent respectively in Seoul.