Asian markets gain on global cues

Asian markets surged today on cues from US peers as concerns over rising crude oil prices eased. The Central Bank's signal of a possible rate rise buoyed the Euro as well.

Hang Seng added 1.2% to 23,409. Nikkei jumped 1% to 10,694. The Japanese markets gained for the second straight day, mirroring US bourses even as analysts predicted trades to be choppy in the next few sessions. Euro sensitive stocks advanced in today's trades.

US markets had climbed on an upbeat US labour market data. The Dow gained 1.5%, to end at 12,258. The S&P 500 rose 1.72%, to finish at 1,331. The Nasdaq jumped 1.8% to close at 2,799.

Oil retreated from 2-1/2 year highs on profit taking after Venezuela pitched a plan to resolve the Libyan crisis which markets greeted with a heavy dose of skepticism. As oil paused from its recent climb, the market's focus shifted to the February US employment report.

"Right now people are focusing on positive signs in the U.S. economy, but even if U.S. jobs data cheers the market tonight and U.S. markets post gains, the market still hasn't forgotten the inflationary risk that comes with higher oil prices," said Hiroyuki Fukunaga, chief executive of trading information provider Investrust.  

Notwithstanding the Libyan crisis, Asian markets have generally underperformed this year as inflows into emerging market funds have slowed sharply due to concerns of inflation and crowded positioning in some of the region's markets.

Shanghai Composite surged 1.3% to 2,942 as coal miners and realty stocks leaped on hopes of a strong earnings growth in 2010. Realtors also hoped for supportive policies that could emerge from China's annual legislative meeting, which begins tomorrow.

Seoul Composite rallied 1.7% to 2,005. Straits Times added 1.1% to 2,005. Taiwan Weighted was up 0.5% at 8,784. In Europe, CAC advanced 0.5% to 4,084. FTSE and DAX were up 1% each at 6,048 and 7,293, respectively.