Asian stocks rallied Wednesday as economically bullish comments from China's premier spurred buying, and as investors anticipated favorable outcomes in key upcoming decisions from Europe and the U.S. Japan's Nikkei Stock Average 100000018 jumped 1.5% , South Korea's Kospi SEU gained 1.4%, and Australia's S&P/ASX 200 indexXJO added 0.8%. Hong Kong's Hang Seng Index HSI rose 1.1%, while China's Shanghai Composite 000001 gave up early gains and lost 0.4%. The performance in Asia came after Chinese Premier Wen Jiabao vowed his nation would meet its official target of 7.5% economic growth for 2012. Read more on Chinese Premier Wen Jiabao's comments. Tom Kaan, Louis Capital Markets' director of equity sales in Hong Kong, said Wen's comments were helping drive strength across Asia. “We haven't seen full-hearted investor conviction until today, and that coincides with Premier Wen saying China has the capability to ensure 7.5% growth is met," he said. An upbeat session on Wall Street set a positive tone for Asia trading. The Dow Jones Industrial Average DJIA climbed to its highest level in nearly five years Tuesday, as investor optimism swelled ahead of a German court ruling on the European bailout plans and a U.S. Federal Reserve policy decision. Read more on the U.S. session. Germany's top court was due to rule on the legality of euro zone bailout fund later Wednesday. “The most likely outcome is that the court rules the European Stability Mechanism legal but also imposes conditions on its future use," Capital Economics strategist Jennifer McKeown said. Stocks on Wall Street also found support as traders considered the extent of action the Fed will take to stimulate the U.S economy at the conclusion of a two-day meeting on Thursday. The U.S. central bank is expected to unveil some new measures to spur growth, though it might wait to launch a fresh round of quantitative easing. Read preview analysis of the Fed meeting. Louis Capital Markets' Kaan said “the next 48 hours are critical" for global markets. “We'll see whether Bernanke will throw a bone to markets, and the German court decision — it's not going to resolve [Europe's problems] today, but we're moving in the right direction," he said. Major movers Major exporters shone in Tokyo, as Ricoh Corp. 7752RICOY and Citizen Holdings Co. 7762 rallied 3.6%, while TDK Corp. 6762 TTDKY jumped 5.4%. Solid data added to positive mood in Japan, as core machinery orders beat expectations in July. Read more on Japan's core machinery orders. Stocks in the key shipbuilding sector outperformed in Seoul, where Hyundai Heavy Industries Co. added 3.8% and Daewoo Engineering & Construction Co. traded up 2.3%. The gains came as data showed South Korea's jobless rate held steady at 3.1%. Read more on South Korea's jobless rate. Resources rally Growth-tied stocks climbed across Asia following the comments from China's premier and a rise for many commodity prices overnight. “It may not be the full-blast importer that it was a couple of years back, but China is still very resource-thirsty," said Louis Capital Markets' Kaan. Tokyo-listed steel maker JFE Holdings Inc. 5411 put on 1.9%, while Angang Steel Co. 347 ANGGY added 2.2% in Hong Kong. Coal miners China Coal Energy Co. CCOZY1898 and China Shenhua Energy Co. CSUAY 1088 rose 2.4% and 2.2%, respectively. Australian resource stocks also moved higher, with global miner Rio Tinto Ltd. RIO RIO up 1.2%. Rival BHP Billiton Ltd. BHP BHP added 0.9% after the miner's chairman Jacques Nasser reportedly told a business lunch increased royalties on due to be levelled on coal producers in Queensland, Australia, would result in job losses and lost investment. Read more on Nasser's comments. Shares of iron-ore producer Fortescue Metals Group Ltd. FMGFSUGY rallied 3.1% as prices for its key material rose back above $100 a ton. In the energy sector, Cnooc Ltd. CEO883 gained 1.2% in Hong Kong and Inpex Corp. 1605 IPXHY rose 2.8% in Tokyo, after crude-oil futures climbed in New York trade overnight. Tokyo Electric Power Co. 9501 TKECF stock bucked the trend, sliding 0.8%, after announcing it would draft reform plans for its nuclear division by year-end following the power company's 2011 nuclear disaster at its Fukushima nuclear plant, according to reports from Kyodo News and the Nikkei business daily. Prada S.p.A 1913 PRDSY was another notable decliner, with shares down 2.3% in Hong Kong, as broker CIMB downgraded the stock to neutral from outperform in the wake of a profit warning from Burberry Group PLC BRBY “The long-awaited slowdown in global luxury consumption appears to be finally hitting home as Burberry revealed a significant deceleration in recent weeks. Prada will not be immune," CIMB wrote in a research report. Marketwatch
