Asian shares cheered by Wall Street rally

Asian stocks rose on Thursday, with Hong Kong leading the gains after a rally on Wall Street cheered investors and eased fears of a deep and lasting global market rout. Comments from a senior US Federal Reserve official that the case for a rate rise in September had weakened and upbeat durable goods data also boosted sentiment, pushing up the dollar.

Tokyo stocks closed up 1.08 percent, or 197.61 points, to finish at 18,574.44, while Seoul gained 0.73 percent, or 13.91 points, to 1,908 and Sydney rose 1.17 percent, or 60.53 points, to 5,233.30. Hong Kong rose 1.94 percent in afternoon trading and Shanghai gained 0.81 percent.

Wall Street finished sharply higher on Wednesday, ending a six-day losing streak after fears for China s stalling economy wiped some $8 trillion from global share markets. Asian shares had ended the day mixed after a volatile session that saw Shanghai veer wildly between losses and gains as dealers weighed news that China s central bank had cut its key rates and moved to free up cash for banks. Thursday s gains came after William Dudley, the head of the New York branch of the Fed, said the reasons for a rate hike in September had been dampened by the turmoil gripping financial markets. Dealers had feared that a rise in US rates -- their first in almost a decade -- would heap pressure on the world economy at a time when a slowdown in China is already expected to drag on growth. A better-than-expected official US manufacturing report showing orders for durable goods -- products expected to last at least three years -- jumped 2.0 percent in July also added to the optimism. "Strong durable goods numbers out of the US and tempting valuations saw a phenomenal bounce in all US equities," said Angus Nicholson at IG Markets. "William Dudley s speech seemingly put to bed any prospect of September rate hikes... I think the market will largely be looking towards December as the most likely date if a rate hike happens this year."