Asian markets rose as progress toward a debt-restructuring deal in Greece encouraged investors, while an upbeat earnings outlook from Toyota Motor aided car makers in Tokyo.
Japan's Nikkei Stock Average advanced 1.1% to 9015.59, it highest close in more than three months; Hong Kong's Hang Seng Index climbed 1.5% to 21018.46, its highest closing level in six months, and South Korea's Kospi rose 1.1% to 2003.73, its highest close in more than six months.
Australia's S&P/ASX 200 index rose 0.4% to 4290.7, while China's Shanghai Composite gained 2.4% to 2347.53. India's Sensitive Index, or Sensex, rose 0.5% to 17707.32.
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Peter Lai, director at DBS Vickers in Hong Kong, said that though the euro-zone debt situation remains highly uncertain, "improved sentiment is helping the market."
Greek politicians reportedly neared an agreement Tuesday on austerity measures needed to secure fresh bailout funds, allowing the government to avoid defaulting on its debt. At the same time, the European Central Bank agreed to exchange Greek government bonds it bought on the secondary market for less than their face value, provided the debt-restructuring talks succeed, according to people briefed on the negotiations. The move would help to reduce Greece's debt burden.
Hopes of a resolution fueled modest gains in U.S. stocks.
DBS Vickers' Peter Lai said offshore buying supported some mainland Chinese shares, after the Shanghai index closed down 1.7% on Tuesday.
"Some of the funds are chasing the laggards in Chinese stocks," he said. "Investors have to weigh more figures from China, including the consumer price index." The CPI is slated for release on Thursday.
"Inflation should be under control, meaning there is room for the Chinese government to reduce [banks'] reserve-requirement ratios, which would be positive for the stock market," Mr. Lai added.
Property companies were among the gainers in Hong Kong, after China's central bank said it planned measures to help first-time home buyers. China Resources Land climbed 3.1%, China Overseas Land & Investment rose 5.3% and Agile Property Holdings jumped 4.2%.
Energy stocks also gained ground after China's National Development and Reform Commission said gasoline and diesel prices will be raised by 300 yuan ($47.64) a metric ton, effective Wednesday. PetroChina rose 2.2% and China Petroleum & Chemical, or Sinopec, advanced 1.8%.
Toyota Motor rose 5% after the auto maker raised its full-year earnings target late Tuesday, even as it posted a decline in net profit for the quarter ended in December.
Other Japanese auto majors followed Toyota higher: Mazda Motor surged 7.3%, Honda Motor added 2.7% and Mitsubishi Motors gained 3.2%.
A host of technology stocks also rose sharply in Tokyo. Renesas Electronics jumped 10%, Fujitsu rose 2.9% and Panasonic added 3.3% after the Nikkei newspaper reported that the trio are in discussions to integrate their system-chip operations.
Elpida Memory jumped 9.4% on a separate Nikkei report that the company is looking to move its production base for low-priced DRAM chips to Taiwan to cut costs and minimize the impact of the yen's appreciation.
Korea's shipbuilding sector extended its recent strength in Seoul. Daewoo Shipbuilding & Marine Engineering added 4.8%, while Hyundai Heavy Industries rose 5.9% and Samsung Heavy Industries gained 5.6%.
In Sydney, index heavyweight BHP Billiton ended 0.4% lower after posting a first-half net profit of US$9.94 billion, slightly below analysts' expectations.
Fortescue Metals Group advanced 3.2% after regulators in Western Australia conditionally approved its proposed expansion of the Cloudbreak iron-ore mine in the Pilbara region. Macquarie Group rose 3.1%, recovering some of the loss it took Tuesday after the investment bank forecast a sharp fall in annual profit but also unveiled a stock buy-back program.
Energy major Reliance Industries rose 1.6% to 858.05 rupees. The company, which has the highest weighting in India's Sensex, last week started a $2.1 billion share buyback program.
Bharti Airtel fell 6.6%. The telecommunications company reported a lower-than-expected quarterly profit, marking the eighth straight quarter in which its net result has declined.
Write to Nick Godt at nicolast.godt@dowjones.com
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