US shares powered higher as a sharply higher price announced for the takeover of troubled investment bank Bear Stearns eased concerns about a financial sector meltdown.

News of a surprise rebound in existing home sales also brightened the mood on Wall Street, where analysts said sentiment appeared to be stabilising after a dismal start to 2008.

Hong Kong shined on the day with 6.4 per cent leap, Tokyo rose 2.12 per cent, Sydney gained 3.7 per cent, Mumbai gained 6.07 per cent, Singapore was up 2.47 per cent, Jakarta was up 3.4 per cent, and Kuala Lumpur was 2.4 per cent higher.

KUALA LUMPUR
Malaysian share prices closed 2.4 per cent higher on Tuesday due to the overnight rally on Wall Street, dealers said.

The Kuala Lumpur Composite Index closed up 28.93 points at 1,229.95, off a high of 1,234.58.

HONG KONG
Hong Kong stocks surged 6.43 per cent on Tuesday, the biggest one-day percentage gain in two months, tracking Wall Street gains on improved investor confidence after JP Morgan?s raised offer for Bear Stearns .

The benchmark Hang Seng Index ended at 22,464.52.

The China Enterprises Index of Hong Kong-listed mainland companies, or H shares, finished up 8.22 per cent at 11,727.00.

SHANGHAI
Chinese stocks ended higher on Tuesday, led by property and airline shares, as the main stock index rebounded from technical support to close almost unchanged after tumbling near a nine-month low in early trade.

The benchmark Shanghai Composite Index , which sank 4.49 per cent on Monday, ended Tuesday up 0.09 per cent at 3,629.619 points. It hit an intra-day low of 3,521.528 in the morning, just off last Thursday's nine-month low of 3,516.330.

Rising Shanghai shares outnumbered falling stocks by 639 to 242, but turnover in Shanghai A shares shrank to a thin 77.6 billion yuan ($15.23 billion) from Monday's 88.3 billion yuan.

The index's recovery during the day was its second bounce from near technical support at 3,561, the 50 per cent retracement of its bull run from June 2005; the first bounce occured last week. So many analysts believe that area may be the bottom for the market in the short term at least.

TOKYO
Japan's Nikkei average rose 2.1 per cent on Tuesday as Canon and other exporters climbed with the yen trading well off a near 13-year high posted last week against the dollar, easing some concerns about exporters' earnings outlooks.

Sharp gains in other Asian markets also gave a boost to the Tokyo bourse, where investors continued to pick up recently battered shares.

The benchmark Nikkei ended up 265.13 points at 12,745.22. The Nikkei ended near flat on Monday, snapping a three-day winning streak. The broader Topix index added 1.5 per cent to 1,242.98. The index rose for the fifth straight session.. -- BERNAMA, REUTERS