Asia stocks up on U.S. confidence; Nikkei up 1.22%

Investing.com - Asian stocks shot up early Wednesday, following in the footsteps of U.S. equities that shrugged off weak durable goods orders and rose on firming consumer confidence numbers as well as on falling oil prices.

Stronger industrial output figures in Japan and a weaker yen also pushed stocks upward.

During Asian trading on Wednesday, Hong Kong's Hang Seng Index was up 0.54%, Australia's S&P/ASX200 was up 1.19%, while Japan’s Nikkei 225 Index was up 1.22%.

In the U.S. earlier, the Conference Board reported its U.S. consumer confidence index jumped to a 12-month high in February, rising to 70.8 from 61.5 in January and far outpacing expectations for a gain to 63.0.

The news offset negative indicators hitting the wire, including the Commerce Department announcement that U.S. orders for durable manufactured goods fell by the most in three years in January.

Durable goods orders dropped 4.0% in January, far worse than forecasts for a 0.8% decline.

U.S. home prices fell more than expected in December, according to the Standard & Poor's Case-Shiller home-price index.

Considering that 70% of U.S. economic output stems from consumer spending, the confidence index served as the U.S. market's chief steering current, sending the Dow Jones Industrial Average closing over the psychologically important 13,000 mark.

Asian stocks followed suit, as a stronger U.S. economy will boost Asian exports.

Industrial output in Japan came in stronger than expected for January, rising 2% from December, above expectations for a gain of 1.5%.

Lower oil prices also fueled Asian stock gains, as did a weaker yen.

In Hong Kong, the top gainers included Cathay Pacific, up 3.43%, Bankcomm, up 1.90%, and China Life, up 1.80%.

In Australia, the top gainers included White Energies, up 5.95%, Billabong International, up 5.70%, and Bathurst Resources, up 4.55%.

European stock futures indicated a positive opening.

France's CAC 40 futures pointed to a gain of 0.15%, while Germany ’s DAX 30 futures signaled a gain of 0.07%. Meanwhile, in the U.K., the FTSE 100 futures indicated a gain of 0.08%.

Dow Jones Industrial Average futures were up 0.08% while the S&P 500 futures were up 0.11%.

Later Wednesday, the eurozone will release a report on consumer price inflation in the single currency bloc.

Also on Wednesday, Finland’s parliament is to vote on Greece’s bailout, while the ECB is to launch its second refinancing operation.

The U.S. is to release a preliminary report on fourth-quarter GDP, the broadest measure of economic activity and the primary gauge of the economy’s health. The country is also to report on manufacturing activity in the Chicago area.

Also Wednesday, Federal Reserve Chairman Ben Bernanke is due to testify on the semi-annual monetary policy report before the House Financial Services Committee in Washington.