Asian stocks ended with strong gains on Wednesday amid renewed optimism about a U.S.-China trade deal after the two countries resumed talks earlier this week to end their disputes.
The markets also reacted positively to news about Canada granting bail to the detained Huawei Chief Financial Officer Meng Wanzhou. Meng was apprehended at the behest of the U.S. last week.
In an interview with Reuters, President Donald Trump expressed optimism he could strike a trade agreement with Chinese President Xi Jinping and also said he would intervene with the U.S. Justice Department in the case against Wanzhou if it would help close a deal with China.
China's Shanghai Composite Index rose 8.06 points or 0.3 percent to 2,602.15, with oil, real estate and electricity stocks leading the way higher. Hong Kong's Hang Seng Index surged up 415.04 points or 1.6 percent to 26,186.71.
Japanese stocks also rallied sharply on widespread buying. The benchmark Nikkei 225 Index spiked 454.73 points or 2.2 to 21,602.75. The mood was so bullish that just 21 stocks out of the 225-stock index failed to make it to the positive territory.
Yamaha Corp., Showa Denko K.K., Tokyo Electric Power, Kawasaki Kisen Kaisha, Daikin Industries, JGC Corp., Toto, NTT Data Corp. and Kikkoman Corp. posted standout gains. Auto, chemical, food, electric power, machinery and petroleum stocks also moved notably higher.
In economic news from Japan, the Cabinet Office said core machinery orders soared 7.6 percent to 863.2 billion yen in October. That was shy of expectations for an increase of 9.7 percent following an 18.3 percent plunge in September.
The Bank of Japan said producer prices in Japan were down 0.3 percent on month in November compared to expectations for a decline of 0.1 percent following a 0.4 percent increase in October.
Australian stocks also moved to the upside on the day. The benchmark S&P/ASX 200 Index jumped 77.60 points or 1.4 to 5,653.50, while the broader All Ordinaries Index surged up 76.10 points or 1.4 to 5,727.30.
Speedcast International spiked 7.8 percent and Mayne Pharma Group shares gained more than 6 percent. Galaxy Resources added 5.9 percent, Altium gained 5.6 percent and AHG moved up 5.3 percent.
Meanwhile, prominent losers included St. Barbara, Regis Resources, Northern Star Resources, Nine Entertainment Co. Holdings and Lynas Corporation.
Markets in Malaysia, New Zealand, Singapore, South Korea, Indonesia and Taiwan also ended on a strong note.
Indian stocks also moved sharply higher, with investors cheering the assembly elections results and the appointment of a new governor for the Reserve Bank of India.
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