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Asia shares up after record Wall Str close

Hong Kong - Asian markets resumed their upward trend on Wednesday following another record-breaking close on Wall Street, where strong economic data buoyed sentiment as investors returned from a long weekend.

The bullish sentiment provided the dollar with support, while the euro remains under pressure on expectations the European Central Bank will announce fresh measures to combat deflation fears.

Tokyo rose 0.24% to finish at 14 670.95, Seoul gained 0.97% to 2 017.06 and Sydney added 0.28% to 5 527.2.

Shanghai climbed 0.77% to 2 050.23 and Hong Kong added 0.59% to 23 080.03.

After the Memorial Day long weekend US shares rallied on Tuesday in response to more data showing the economy is getting back on track.

Independent business research group The Conference Board said its index of consumer confidence rose to 83.0 in May from 81.7 last month. It is also well up from 74.3 a year ago.

Home prices in the US rose 0.9% in March after a February stall caused by severe winter weather, the S&P/Case-Shiller index showed. And the Commerce Department said new orders for US durable goods rose 0.8% in April, a third consecutive pick-up and better than forecasts for a 1.3% fall.

The S&P 500 climbed 0.60% Tuesday, hitting another record after breaking the 1 900 level for the first time Friday.

The Dow added 0.42%, while the Nasdaq surged 1.22%.

Eyes are now on the release of revised first-quarter economic growth data on Friday.

Euro weaker on talk of ECB easing

In foreign exchange trade the dollar sat at ¥101.90, compared with ¥101.96 in New York on Tuesday. While the dollar is unable to break the ¥102 barrier it has been supported by the upbeat outlook on the global economy, which has seen investors embrace more risk and move away from the safe-haven Japanese unit.

The euro bought $1.3624 and ¥138.78 against $1.3634 and ¥139.03.

The single currency has slipped steadily for three weeks as dealers bet the ECB will move to loosen monetary policy when its board meets on June 5.

Nobel laureate and economist Paul Krugman urged the ECB Tuesday to raise its 2.0 inflation target.

"I am well aware that any proposal for a rise in the inflation target is greeted with extreme scepticism by central bankers," Krugman said at an ECB forum on monetary policy in Sintra, near the Portuguese capital Lisbon.

"If the two percent target was defendable in the 1990s, it's likely not to be adequate in the future," he said.

Oil prices were mixed. The US benchmark, West Texas Intermediate for delivery in July, rose 12 cents to $104.23 in afternoon trade. Brent North Sea crude for July gained 21c to $110.23 per barrel.

Gold fetched $1 264.85 an ounce at 10:00 GMT compared with $1 283.05 late on Tuesday.

In other markets:

- Taipei put on 0.73% to 9 121.71.

Hon Hai edged up 0.65% to Tw$93.4 while Taiwan Semiconductor Manufacturing Co was 0.4% higher at Tw$124.0.

- Wellington rose 0.69% to 5 181.46.

Fletcher Building was up 0.55% at NZ$9.18 and Air New Zealand added 0.23% to NZ$2.165.

- Manila rose 0.11% to 6 787.88.

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