Asian shares rise after strong day in US, Japan shares gain despite political uncertainty

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Asian shares up strongly after gains in the US

BANGKOK — Asian markets jumped Thursday after gains on Wall Street triggered by strong housing figures gave investors enough confidence to snap up riskier assets like shares following a monthlong slide.

Oil was approaching $74 a barrel, while the dollar strengthened slightly against the yen but slid versus the euro.

Japan’s benchmark Nikkei 225 stock index climbed 3.2 percent to 9,904.92, South Korea’s Kospi gained 1.7 percent to 1,658.31 and Hong Kong’s Hang Seng was 1.8 percent higher at 19,830.59.

Shares in Australia, China, Taiwan and Singapore also advanced.

Asia’s move higher largely reflected a rebound in the U.S. on Wednesday, where the Dow Jones industrial average achieved its third-biggest gain this year. The Dow ended 2.3 percent higher at 10,249.54 while the broader Standard & Poor’s 500 index rose 2.6 percent to 1,098.38 and the tech-heavy Nasdaq composite index also ended higher.

Investors seemed primed to resume buying after a dismal month of trading in May, when stocks were pounded by concerns that spending cuts in Europe would hobble a recovery in the global economy.

“After the declines in late May, I think investors are ready for bargain-hunting,” said Francis Hun, general manager of Fulbright Securities Ltd. in Hong Kong. “The market fell low enough for people to buy. Investors regained their composure and decided to make money.”

An upbeat report in the U.S. on pending home sales provided some hope for the housing market there, though the increase in signed contracts for homes was due partly to a rush to meet a tax credit that expired in April.

Traders are still jittery and could resume selling on one disappointing headline. That’s what occurred Tuesday when the news that the U.S. government said it would launch criminal and civil investigations into the Gulf of Mexico oil spill erased the gains from upbeat reports on manufacturing and construction spending.

Shares in Europe fell Wednesday on concerns of how the debt crisis would affect European banks, but the strong showing in the U.S. help limit the damage.

In currencies, the dollar rose to 92.30 yen from 90.98 yen, while the euro strengthened against the dollar, to $1.2313 from $1.2204. Movement in the single currency used by 16 European countries is seen as a reading on confidence in Europe’s ability to contain its sovereign debt crisis.

Benchmark crude for July delivery was up 99 cents at $73.85 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose 28 cents to settle at $72.86 on Wednesday.