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Asian markets up after Wall Street rally

  • Story Highlights
  • NEW: Shanghai composite down 0.1 percent; HK's Hang Seng in positive territory
  • Obama pledges transparency and near earmarks in his stimulus bill
  • London, Paris and Frankfurt all finish the day up by at least 0.85 percent
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(CNN) -- Markets in Australia, Japan, and South Korea bolted upward Wednesday, with Hong Kong's Hang Seng up a quarter percent after a slight drop earlier.

Asian markets up after Wall Street rally

Tokyo's Nikkei index jumped 2 percent, as investors traded high on hopes for a U.S. economic stimulus package from the incoming Democratic administration. Australia's All Ordinaries index rose 1.1 percent, and Seoul's KOSPI index was up 2.1 percent.

Shanghai's composite index posted a slight drop of 0.1 percent.

U.S. President-elect Barack Obama met with his economic advisors Tuesday after a Monday meeting with Democratic and Republican Congressional leadership on his plans to stimulate the United States' sagging economy.

Obama pledged transparency and no earmarks in his stimulus bill, warning of "tough choices" and breaking "old habits."

"We're going to be investing an extraordinary amount of money to jump-start our economy, save or create 3 million new jobs, mostly in the private sector, and lay a solid foundation for future growth," he said. "But we're not going to be able to expect the American people to support this critical effort unless we take extraordinary steps to ensure that the investments are made wisely and managed well."

Wall Street rallied on Tuesday, as investors looked beyond the Federal Reserve's dour outlook on the economy and instead scooped up shares hit in last year's big sell-off.

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The Dow Jones industrial average rose 62 points, 0.7 percent, to 9,015. The Standard & Poor's 500 index gained 0.8 percent and the Nasdaq composite climbed 1.5 percent.

In Europe, London's FTSE-100 index closed up 1.3 percent, the Paris CAC 40 finished the day ahead by 1.1 percent, while the DAX in Frankfurt closed up 0.85 percent.

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