Asian shares rose overnight, led by electronics makers and resource stocks, after successful European debt auctions boosted hopes for global growth and lifted commodity prices.
Analysts were expecting European shares to rise for a sixth session in a row, with spreadbetters calling London's FTSE 100, Germany's DAX and France's CAC-40 to open 0.5 - 0.9 per cent higher.
The euro steadied near its highest in 2 weeks, and easing fears about Europe's debt crisis also fuelled gains for higher-yielding currencies such as the Australian dollar.
Industrial raw materials also gained, with copper up for a seventh day running to post its longest winning streak since at least 1993, while crude oil extended its rally into a third day.
Tokyo's Nikkei rose 1.8 per cent to close above 10,000 points for the first time in nearly a month, picking up steam after finishing above its 25-day moving average on Tuesday.
MSCI's index of Asian stocks outside Japan rose 1 per cent.
US stocks gained more than 2 per cent yesterday, with the S & P 500 rising above its 200-day moving average for the first time in a month, as investors took heart from successful debt auctions in some of the euro zone's weaker members.
The euro paused around $1.2315 having risen to as high as $1.2350, the strongest level since June 1, in the previous session after debt auctions in Spain, Ireland and Belgium drew solid demand.
The single currency has been battered for months as investors took fright at high euro zone sovereign debt levels and low growth prospects in several countries in the bloc.
Some traders said a short squeeze on the euro -- with investors who had been betting on falls scrambling to cover their positions -- could push the currency higher.
REUTERS