Asian stocks end on firm note

Bearing China, most regional benchmarks record strong gains

Asian stocks added impressive gains today, as upbeat cues from overnight US markets and ideas global economy is still maintaining its recovery helped spurt the sentiments for the regional benchmarks. Commodity prices rallied in the initial trades, with the dollar giving up its gains earlier in the week. Bullish investors took comfort after a report said that pending home sales in the U.S. climbed 6% in April- hitting six-month high and clocking gains well ahead of estimates.

The Dow Jones industrial average put in one of its biggest one-day gains this year in New York, finishing nearly 226 points, or 2.3 percent, higher. Dow Jones Futures are in green, up 18 points, after the index shot up by more than 2% yesterday, indicating a very stubborn support around 10000 levels. Risk taking investors are playing their cards yet gain, with most of the risky asset classes seafaring in the positive territory. The recent housing data provides assurance that the U.S. economy is improving and that's boosting investor sentiment. Apart from the yesterday's upbeat pending home sales data, the markets are also eying fact that the housing starts in US has shot up to the highest level since 2008.

The Australian stock market jumped more than 2 percent on a positive lead from Wall Street. The ASX 200 gained 105 points, or 2.3 percent, to close at 4,486 with the biggest gainers being banks and financials, followed by mining companies.

Japanese markets also put in a very impressive performance. The Nikkei 225 index more than recouped losses from the previous day after the Japanese Prime Minister, Yukio Hatoyama, resigned. The Nikkei had dropped 1.1 percent amid the political mayhem in Tokyo the previous day. Sentiment in Japan was further helped by the fact that the yen continued to weaken; testing its two-week lows against the US dollar.

However, the Chinese shares fell sharply, as profit taking in the late afternoon trading dragged down earlier gains led by software and heathcare shares. The Shanghai Composite Index closed at 2,552.66 points, down 18.77 points, or 0.73 percent from the previous close. Market participants are keenly watching the 2600 point levels to hold for the benchmark index on a closing basis The Shenzhen Component Index ended at 10,118.04 points, down 70.10 points, or 0.69 percent, from the previous close.

In other markets, Straits Times index in Singapore added 2.42% while the Hang Seng index in Hong Kong rose 1.62% and the Taiex in Taiwan jumped 2.30%.

In Mumbai, buoyed by a strong close on Wall Street overnight on the back of encouraging data on housing and services sector growth, stocks traded firm right through the and recorded its sixth gain in seven trading sessions. The Sensex ended the day at 17,022.33 with a strong gain of 280.49 points or 1.68%.

In commodities, crude oil rose feverishly, testing highs above $74 as markets eyed the drop in US crude inventories and the strong demand outlook for near term as US summer driving season enters into its peak.