Asian stocks hit two-week highs today after comments from Federal Reserve Chairman Ben Bernanke reinforced expectations of a further US interest rate cut.
Those rate views were set to lift stocks in Europe as well, with financial analysts expecting opening gains of up to 0.5 per cent for all three major equity indexes.
Oil steadied near $91 a barrel after shedding overnight gains on news that a fire-damaged Canada-to-US pipeline could resume operation within days, while gold wallowed below $800 an ounce, dulled by the fall in oil.
Stock investors took heart after Mr Bernanke said a resurgence in financial strains had dimmed the outlook for the US economy, and the Fed would have to remain "exceptionally alert and flexible".
Mr Bernanke's comments came after weaker-than-expected new home sales and a surge in claims for new jobless benefits took the gloss off revised figures showing the US economy grew at 4.9 per cent in the third quarter, the best performance in four years.
Tokyo's Nikkei average ended 1.1 per cent higher, while MSCI's measure of other Asia Pacific stocks climbed 1.4 per cent.