Bangkok and Singapore were the day's star performers, surging 6.4 per cent and 5.7 per cent respectively on a wave of foreign institutional buying. Elsewhere in the region, Tokyo rose 1.8 per cent, Hong Kong gained 3.4 per cent to reclaim the 10,000-point level, Kuala Lumpur ended 3.3 per cent higher and Sydney jumped 1.3 per cent. Jakarta rose 4.5 per cent, Manila gained 3.6 per cent and Seoul was up 2.3 per cent to finish above the 600-point level while Taipei posted its first gain in eight sessions with a 0.7 per cent rise.

The rise was partly fuelled by a sharply higher close on Tuesday on Wall Street where the Dow Jones Industrial Average ended the day up 126.92points - a solid 1.4 per cent - at 9,311.19.

In Hong Kong share prices surged in a rally fuelled by speculation over interest rate cuts and the Wall Street gains.

"The sentiment has been boosted by anticipation of further local interest rate cut as well as by gains on Wall Street and the Tokyo market," said Alex Tang, research director at Core Pacific-Yamaichi International. The key Hang Seng index gained 342.74 points to close at 10,233.80.

Tokyo: Japanese share prices ended 1.8 per cent higher as the dollar's rebound against the yen triggered buying in exporter blue-chips, brokers said.

"Foreign investors' profit-taking related to the yen's appreciation ran out of steam, as the yen's upturn took a breather," a Tokai-Maruman Securities broker said. The key Nikkei 225 index rose 235.72 points to close at 13,468.46, accelerating gains in late trading. The Topix index of all first-section stocks rallied 10.43 points to end at 1,058.76.

Leading exporters, particularly automakers, attracted buying. Thedollar climbed back against the yen to trade at 112.57-60 yen, up from 111.51 yen in New York late Tuesday.

Singapore: Singapore share prices closed 5.7 per cent higher on strong foreign buying, dealers said. The benchmark Straits Times index of the Stock Exchange of Singapore gained 78.73 points to end at 1,464.97 while the broader All-Singapore index rose 15.71 to 393.97.

"We are seeing some pretty good buying - both institutional and retail buying," said Chan Tuck Sing, dealing director with local stock brokerage OUB Securities. "The general view is that the rise of the market could be sustained at least until the end of January or early February. Thereafter, there will be some assessment of the economic sitution," Chan said.Kuala Lumpur: Malaysian share prices surged 3.3 per cent largely on institutional support in line with rises in regional markets, dealers said. The Kuala Lumpur Stock Exchange's composite index rose 18.59 points to end at 586.48 points.

One local institutional dealer said localfunds were actively buying blue chips on expectations that a deputy prime minister would be appointed soon to succeed Anwar Ibrahim who was sacked in September. The dealer said stocks with perceived links to a possible candidate, former finance minister Razaleigh Hamzah, rose sharply in brisk trade.

Bangkok: Thai stocks leapt through the psychological 400-point barrier, gaining 6.4 per cent with few negative factors to curb buoyant New Year sentiment, analysts said.

They said shares were sharply higher in heavy trade amid foreign buying in large-caps, especially in communications, energy and building stocks. They said profit taking would likely set in soon. The Stock Exchange of Thailand (SET) composite index soared 24.05 points to close at 402.56 points, while the select SET 50 rose 2.17 points to 29.85. Analysts said the index took its lead early Wednesday from Wall Street in line With regional markets. "This is all part of what will be a quite volatile market early on this year," a local analyst said.