LONDON (CNNfn) - Asia's leading markets rose Wednesday, mirroring strong gains on Wall Street after the U.S. Federal Reserve raised interest rates the previous day by an expected quarter percentage point. Tokyo's blue-chip index advanced more than half a percent, and Hong Kong rose more than 2 percent on renewed demand for "old economy" stocks.
Tokyo's benchmark Nikkei 225 index rose 131.23 points, or 0.67 percent, to end at 19,733.59.
Daiwa Securities surged 7 percent to 1,830 yen after Nihon Keizai Shimbun, which administers the Nikkei index, said Tuesday the brokerage would join the Nikkei 225 index from March 28. Daiwa will take the place of Mitsui Trust & Banking Co as a result of its merger with Chuo Trust & Banking Co. Typically, funds that track the performance of the index will buy the stock.
Drugs maker Sankyo fell 6 percent to 2,285 yen after U.S. drug firm Warner-Lambert Co (WLA: Research, Estimates) said it was withdrawing the diabetes drug Rezulin, developed by Sankyo, at the request of the U.S. Food and Drug Administration after some incidents of fatal liver failure. Sankyo said the company would continue selling the drug in Japan under the name Noscal.
But Japan's biggest drug maker, Takeda Chemical Industries, jumped 6.2 percent to 6,850 after the FDA said a diabetes pill made by Takeda and U.S. firm Eli Lilly and Co (LLY: Research, Estimates) was safer than Rezulin.
Oracle Corp. Japan, the Japanese subsidiary of U.S. data and software company Oracle Corp (ORCL: Research, Estimates), climbed 5.7 percent to 102,000 yen after it unveiled a plan Tuesday to sell 9.7 million shares and move to the Tokyo Stock Exchange on April 28.
Shares of Mitsubishi Motors Corp. fell 1.2 percent to 410 yen on reports that DaimlerChrysler (FDCX) may take control of Japan's fourth-largest automaker.
Hong Kong's Hang Seng rose 347.06 points, or 2.1 percent, to 17,547.04, as stocks tracked gains in U.S. shares after the Fed's rate hike. Hong Kong banks are expected to raise their interest rates at a weekly meeting Friday. Banks and property companies led the gains ahead of positive earnings outlooks for several blue-chip companies.
Hong Kong's largest bank HSBC Holdings, which has fallen 17 percent over the last three months, rose HK$2.00, or 2.3 percent, to HK$89.50. Telecommunications conglomerate Hutchison Whampoa rose HK$3.00 to HK$138.50, while parent Cheung Kong (Holdings) gained HK$4.00 to HK$112.00 ahead of what is expected to be a strong earnings report Thursday.
Pacific Century CyberWorks fell for a second day amid investor concern that recent declines in its stock price will jeopardize its purchase of Cable & Wireless HKT. Pacific Century fell 2.4 percent to HK$18.65, while C&W HKT lost HK$0.15 to HK$20.70. China Telecom (Hong Kong), the index's largest stock by market capital, rose HK$2.75 to HK$89.50.
In Singapore, the Straits Times index ended 15.1 points higher at 2,133.64, drifting back from the peak reached earlier in the session. "Old economy" stocks improved, and tech stocks, which had suffered over recent sessions, also profited from renewed demand. Index heavyweight Singapore Press Holdings rose 80 cents to S$30.90. Shipping company Neptune Orient Lines rose 7 cents to S$1.33.
In Sydney, the All Ordinaries Index advanced 31.9 points, or 1 percent, to close at a record 3,274. The index was buoyed by blue-chip gains on Wall Street. Telecommunication stocks were among the biggest winners. AAPT, Australia's third-largest phone company, surged 12 percent to A$10.06 on news that it had sold its satellite business and was in discussions with U.S. internet service market leader America Online (AOL: Research, Estimates). Cable and Wireless Optus gained 52 cents to A$6.84, while index heavyweight Telstra rose 3.9 cents to A$7.879.
Taipei shares closed up 0.7 percent at 9,004.48 as concern about tension between Taiwan and China eased.
Manila stocks slipped 0.3 percent on a raft of lacklustre 1999 earnings reports and uncertainty over the Securities and Exchange Commission probe into gaming firm BW Resources Corp., which fell 10.3 percent to 6.10 pesos. Malaysia shares rose more than 1 percent to close at 949.11, South Korea's benchmark Kospi index rose more than 2.2 percent to close at 882.43, while Thai stocks closed down 0.8 percent at 395.15 as overseas investors sold communications, retail and banking shares.
In the U.S. Tuesday, stocks soared on relief that the Federal Reserve opted for the expected quarter-point hike in interest rates to try to cool the galloping economy. The broad S&P 500 index set its first record high of the year, rising 2.5 percent, to 1,493.87. The Dow Jones industrial average jumped 2 percent to 10,907.34, while the tech-heavy Nasdaq composite index surged 2.2 percent to 4711.68, recovering after the Fed's rate announcement from a decline earlier in the session.
In the currency market, the yen strengthened to 106.51 yen to the U.S. dollar, from 106.71 in late trading in New York Tuesday. 
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