Tokyo Nikkei +0.38%
Hong Kong Hang Seng +2.30%
Shanghai Composite +1.00%
Mumbai Sensex +0.49%
Seoul Kospi -0.02%
Fuelled by encouraging data on China's economy and buoyant vibes from Wall Street, Asian bourses mostly soared higher early on Wednesday.
China's official non-manufacturing purchasing managers index (PMI) rose to 54.4 in August from 54.2 in July.
Even more encouraging, HSBC's services PMI rose to a 17-month high of 54.1 in August from 50.0 the previous month.
"Given that the sector narrowly avoided contraction the month before, it's no surprise that this provided such a boost," said Alpari analyst Craig Erlam. "Especially when it comes from a sector that is going to be of extreme importance for the Chinese economy in the years to come as it transitions from an export led economy to a consumer driven one."
Rabobank pointed to a "Chinese securitization boom" that is currently underway, with $19.7bn in issuance so far in 2014 backed by mortgages, auto loans, and railway loans.
"There's huge further upside in that trend given how many loans Chinese banks would no doubt like to get off their books. Luckily, economic history clearly shows nothing could possibly go wrong from shifting assets off of balance sheets into a slowing economy with a wobbling housing market...right?" wondered analysts, with tongue firmly in cheek.
Risk appetite in China and Japan was also boosted by Japanese Prime Minister Shinzo Abe's appointment of pro-China policymakers among a cabinet reshuffle to help restore economic momentum.
This inclded Yasuhisa Shiozaki, an outspoken reformist who will now head the health ministry, which is responsible for the Government Pension Investment Fund (GPIF), the world's biggest such fund.
Shiozaki is expected to introduce new pension reforms forcing GPIF to shift away from Japanese government bonds towards more risky assets.
Japan's composite PMI was also on the rise, but at much slower degree from 50.4 to 50.8.
The country is heading into a crucial period, according to a note from Goldman Sach's chief Japan economist Naohiko Baba.
He suggested Abe's cabinet was "inwardly rattled" as the success of 'Abenomics' approaches a grand "moment of reckoning with numerous challenges to surmount" before December, when the government is due to make a call on a second consumption tax hike, after April's initial hike caused a major dip in national growth.
"With exports sluggish and real wages declining sharply, the overall picture remains one of a brittle economy that might well derail the debate on a second tax hike heading toward December."