Trader Gregory Rowe, center, works on the floor of the New York Stock Exchange, Tuesday, May 24, 2016. Stocks are opening solidly higher on Wall Street, led by gains in technology stocks and banks. (AP Photo/Richard Drew)
The Associated Press
SEOUL, South Korea (AP) - Asian stock markets rallied Wednesday as solid U.S. housing sales data and overnight gains on Wall Street raised expectations for a strong recovery in the world's largest economy.
KEEPING SCORE: Japan's Nikkei 225 rose 1.7 percent to 16,778.97 and Hong Kong's Hang Seng index jumped 2.3 percent to 20,283.56. South Korea's Kospi gained 1.1 percent to 1,957.87 while Australia's S&P/ASX 200 advanced 1.7 percent to 5,383.70. Stocks in Taiwan, Singapore and Southeast Asia also gained.
US RECOVERY: The U.S. Commerce Department said Tuesday that new home sales leaped 16.6 percent last month to a seasonally adjusted rate of 619,000, the highest level since January 2008. Steady job gains and low mortgage rates have encouraged more Americans to buy new homes in a sign that the housing market and the broader economy are in good shape.
ANALYST'S TAKE: "Such upbeat data have dissipated doubts concerning the recovery in the housing sector," Mizuho Bank said in a daily commentary. "While this strengthens expectations that the Fed may be more comfortable to raise policy rate in summer, markets do not appear to be unsettled."
WALL STREET: U.S. stocks on Tuesday notched their biggest gain since March. The Dow Jones industrial average rose 1.2 percent to 17,706.05 and the Standard & Poor's 500 index gained 1.4 percent to 2,076.06. The Nasdaq composite index surged 2 percent to 4,861.06.
OIL: Benchmark U.S. crude gained 62 cents to $49.24 per barrel in New York. The contract finished 54 cents higher at $48.62 on Tuesday. Brent crude, used to price international oils, rose 56 cents to $49.17 a barrel in London.
CURRENCIES: The dollar rose to 110.13 yen from 110.06 yen. The euro strengthened to $1.1147 from $1.1143.
Specialist Meric Greenbaum, center, works with trader at his post on the floor of the New York Stock Exchange, Tuesday, May 24, 2016. Stocks are opening solidly higher on Wall Street, led by gains in technology stocks and banks. (AP Photo/Richard Drew)
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Specialist Gennaro Saporito, left, works on the floor of the New York Stock Exchange, Tuesday, May 24, 2016. Stocks are opening solidly higher on Wall Street, led by gains in technology stocks and banks. (AP Photo/Richard Drew)
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Traders Frank O'Connell, center, and John Santiago, right, work on the floor of the New York Stock Exchange, Tuesday, May 24, 2016. Stocks are opening solidly higher on Wall Street, led by gains in technology stocks and banks. (AP Photo/Richard Drew)
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Eric Schumacher, center, works with fellow traders on the floor of the New York Stock Exchange, Tuesday, May 24, 2016. Stocks are opening solidly higher on Wall Street, led by gains in technology stocks and banks. (AP Photo/Richard Drew)
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Trader Gordon Charlop, center, works on the floor of the New York Stock Exchange, Tuesday, May 24, 2016. Stocks are opening solidly higher on Wall Street, led by gains in technology stocks and banks. (AP Photo/Richard Drew)
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Trader John Doyle, center, works on the floor of the New York Stock Exchange, Tuesday, May 24, 2016. Stocks are opening solidly higher on Wall Street, led by gains in technology stocks and banks. (AP Photo/Richard Drew)
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Argentina-based Grupo Supervielle's Chairman & CEO Julio Patricio Supervielle poses for photos on the floor of the New York Stock Exchange, after ringing the opening bell to celebrate his company's recent IPO, Tuesday, May 24, 2016. (AP Photo/Richard Drew)
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Argentina-based Grupo Supervielle's Chairman & CEO Julio Patricio Supervielle, center, poses for photos on the floor of the New York Stock Exchange with executives and guests, after ringing the opening bell to celebrate his company's recent IPO, Tuesday, May 24, 2016. (AP Photo/Richard Drew)
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Trader Michael Urkonis, foreground, works on the floor of the New York Stock Exchange, Tuesday, May 24, 2016. Stocks are opening solidly higher on Wall Street, led by gains in technology stocks and banks. (AP Photo/Richard Drew)
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