yayaa, I think tomorrow will be a up day, at least in the morning, so you need to be patient, that I know you would, before jumping in, btw, congratulation for your daughter graduation this coming June!
Financial stocks also climbed after several U.S. regional banks' quarterly results beat forecasts, suggesting it was not all doom and gloom in a sector roiled by the U.S. mortgage market meltdown and the global credit crunch.
European shares were expected to track their U.S. and Asian peers, with financial bookmakers expecting major markets in London <.FTSE>, Frankfurt <.GDAXI> and Paris <.FCHI> to open between 0.9 percent and 1.2 percent higher.
"There is more confidence in the market and people are perceiving that there is a little more value," said Robert Hook, portfolio manager at Australian firm SG Hiscock & Co.
The battered U.S. dollar held ground against the euro, clinging to gains made after surprisingly strong U.S. price and manufacturing data suggested the Federal Reserve may be less aggressive in cutting interest rates than earlier thought.
But it eased against the yen, reflecting caution ahead of quarterly results from top Wall Street names such as JPMorgan Chase , Merrill Lynch and Citigroup , heightened by a report of more write-downs at Merrill.
INTEL BOOST
On Tuesday, leading U.S. regional banks, including U.S. Bancorp and Regions Financial Corp , beat expectations with first-quarter profits and expressed confidence they could withstand rising credit losses
Investor sentiment was also lifted after Intel, the world's largest maker of semiconductors, affirmed its 2008 profit margin target, reassuring investors concerned about the impact of a weak U.S. economy
Japan's Nikkei average <.N225> advanced 1.2 percent, led by high-tech exporters such as Sony Corp <6758.T>, with financial stocks, including sector leader Mitsubishi UFJ Financial Group <8306.T>, also gaining.
The MSCI's measure of Asia Pacific stocks outside Japan rose 1 percent by 0600 GMT, building on Tuesday's modest 0.5 percent gain, though the index is still down almost 11 percent so far this year.
Taiwan <.TWII> led the region, closing 1.6 percent higher while Hong Kong stocks <.HSI> lagged, up 0.7 percent at the midsession.
Asia's energy and resource stocks were among the top gainers, benefiting from high oil prices.
Analysts said a Wall Street Journal report saying Merrill Lynch would announce $6-$8 billion of asset write-downs had limited impact, although it did exert some pressure on the dollar and some banks in the region trimmed gains.
"Anything negative is just going to affect the financial stocks, that's for sure," said Lucinda Chan, division director at Macquarie Equities in Sydney. "But the news doesn't take me by surprise and that is why people are not totally giving up. Everyone's in a bit of standstill."
Since the first wave of the U.S. subprime mortgage fallout hit financial markets eight months ago, investors have been gnawed by uncertainty over how much damage the turmoil inflicted on economies and company balance sheets.
Markets welcomed even recent dismal earnings from some major banks as a sign that they were scrubbing their books clean and putting the credit crunch behind them.
RARE RELIEF
The dollar held steady against the euro and dipped 0.1 percent against the yen.
The U.S. currency won a rare reprieve after a gauge of New York manufacturing activity rose in April and U.S. producer prices jumped 1.1 percent in March, more than expected.
Worries that the world's biggest economy may have already stumbled into recession have kept the U.S. currency under pressure for months contributing to a global rally in commodities, most of which are priced in U.S. dollars.
The weak dollar and supply worries pushed oil prices to a record high above $114 a barrel on Tuesday. U.S. crude futures edged down in Asia after the dollar's uptick, but held firm above $113.
Share price gains reduced the safe-haven appeal of government bonds, and Japanese government bond futures dipped 0.2 point by 0545 GMT, though uncertainty ahead of U.S. bank earnings offered support.
Gold, used as an inflation hedge at the time of soaring commodity prices and an attractive investment alternative during financial market turbulence, eased to around $925 per ounce after Tuesday's oil-fuelled rally.
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