Bangkok: World stock markets were higher on Wednesday amid successful debt sales in Europe and after President Barack Obama delivered his annual State of the Union speech, vowing to create jobs and spur growth in the world's No. 1 economy.
Oil prices hovered near $87 a barrel, consolidating losses after falling more than 4 percent in less than a week on mixed economic news and the possibility of increased OPEC production. In currencies, the dollar was slightly down against the yen and the euro.
European indexes were higher following successful debt sales by Spain and the eurozone's bailout fund. Britain's FTSE 100 was up 0.9 percent to 5,967.25. Germany's DAX was 1 percent higher to 7,134.69 and France's CAC-40 was up 0.9 percent to 4,057.48.
Wall Street was also headed higher, with Dow futures rising 0.3 percent to 11,956 and S&P 500 futures up 0.4 percent to 1,292.50.
Hong Kong's Hang Seng gained 0.2 percent to 23,842.24, although notable stocks that sank included Macau casino operator SJM Holdings — currently embroiled in an ownership dispute between billionaire founder Stanley Ho and relatives — which tumbled almost 5 percent.
Japan's Nikkei 225 stock average closed down 0.6 percent at 10,401.90. Indexes in New Zealand and the Philippines were also down.
But South Korea's Kospi index rose 1.1 percent to 2,110.46 after news the country's economy, Asia's fourth-largest, grew at its fastest pace in eight years in 2010 even though the expansion slowed in the final quarter. Gross domestic product advanced 6.1 percent last year, marking the best performance since a 7.2 percent surge in 2002.
China's Shanghai Composite index climbed 1.2 percent to 2,708.81. The Shenzhen Composite Index for China's smaller, second market added 1.6 percent to 1,154.42. Markets in Singapore, Taiwan and Indonesia also rose. Australia's stock market was closed for a public holiday.
Investors seemed to regain confidence in the US economy following Obama's address and an improvement in economic indicators that came on the heels of a December rally on Wall Street.
Another boost to confidence happened on Tuesday, when Spain auctioned euro 2.2 billion in short-term debt at much lower interest rates and the eurozone rescue fund effortlessly sold euro 5 billion in five-year bonds to fund its first contribution to a loan for Ireland. The news calmed financial markets.
Still on the radar, however, were concerns that China would soon take more aggressive steps to cool its galloping economy and tamp down inflation.
"We continue to see encouraging signs from the US market," said Amy Lee, a strategist at Nomura Global Equity Research in Hong Kong, "but the Asian market is more driven by China data."
The markets were up ahead of the release of a slew of US corporate earnings reports from companies including Boeing Co., General Dynamics Corp., Starbucks Corp, Xerox Corp. and United Technologies Corp. The Federal Reserve's first interest rate decision of the year was also expected later Wednesday.
The Fed is not expected to alter its current monetary stance, with the main interest rate at the record low of near zero percent and the central bank in the middle of a $600 billion injection into the US economy.
However, investors will be looking for any noticeable change in views on the rate-setting Federal Open Market Committee.
In Washington late on Tuesday, Obama said in the State of the Union address he would boost spending for education, innovation and infrastructure as ways the government can support America's foundation and help businesses create jobs for a generation.
Obama also called for an overhaul of corporate taxes that would eliminate many loopholes and deductions in exchange for lower rates.
On Wall Street overnight, the Dow Jones industrial average slipped just 3.33 points, or less than 0.1 percent, to 11,977.19. The US stocks were under pressure on Tuesday on a round of disappointing earnings results including those from manufacturing company 3M.
In currencies, the dollar was quoted at 82.10 yen, down from 82.20 yen in New York late on Tuesday. The euro edged up to $1.3711 from $1.3685.
Benchmark crude for March delivery was up 50 cents at $86.69 a barrel in electronic trading on the New York Mercantile Exchange. The contract lost $1.68 to settle at $86.19 on Tuesday.
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