LONDON (CNNfn) - Asia's main stock markets closed higher Tuesday, tracking the previous day's gains on Wall Street, with optimism about corporate earnings helping Tokyo's main index to post its biggest gain in more than three months.
In Tokyo, the Nikkei average of 225 stocks jumped 414.56 points, or 2.6 percent, to close at 16,454.74, led by consumer electronics firm Toshiba after the company raised its estimate of earnings for the year ending March 2000.
The Hang Seng in Hong Kong rose 166.8 points, or almost 1 percent, to 17,668.28 as London-based bank HSBC Holdings rose to a record on speculation interest rates were at a near term peak.
In South Korea, telecom stocks staged a recovery after recent declines, contributing to a 2.2 percent advance on the main Kospi index, while the tech-heavy Kosdaq index rose 1.2 percent. SK Telecom, Korea's largest cellular phone company, gained 3.7 percent.
Singapore's Straits Times index gained 10.47 points, or 0.5 percent, to 2,211.16, led by Singapore Telecom after the company paid S$251 million ($146 million) to increase its stake in New Century Infocomm, a fixed-line telecommunications consortium in Taiwan, to 24.3 percent. SingTel rose 1.8 percent.
Bargain hunters eye battered stocks
In Tokyo, a variety of sectors such as pulp, mining and real estate rebounded from Monday's losses.
Toshiba climbed 7.2 percent, extending Monday's 2.9 percent gain, after it raised its group net profit forecast for the year to end-March.
Rival Pioneer jumped 7.3 percent after Société Générale Securities raised its target price and reiterated a "buy" rating.
Mobile-phone operator NTT DoCoMo, Japan's most valuable company, rose 1.5 percent, its parent company Nippon Telegraph and Telephone gained 1.7 percent, and rival DDI jumped 6.8 percent.
Among other gainers, ailing mobile-phone subscription firm and Internet investor Hikari Tsushin rose 3.2 percent even after it lowered its profit estimates for the year to end-August. Its shares had fallen 9.4 percent ahead of Monday's announcement, leaving the shares 98 percent below their value at February's all-time high.
Experts said the market's next move would be driven by the outcome of Tuesday's meeting of the Federal Reserve to set U.S. interest rates. Many investors expect the Fed to keep the key rate at 6.5 percent, but will watch for any hint it will raise rates later in the year.
"Investors want to see the U.S. stock market's reaction to whatever the Federal Reserve says, which might set the tone for global high-techs for a while," said Katsuhiko Kodama, head of equities at Toyo Securities.
Interest-rate-sensitive banks firmed. Bank of Tokyo-Mitsubishi climbed 3.8 percent and Industrial Bank of Japan climbed 3.9 percent.
HSBC lifts Hang Seng
In Hong Kong, hopes that the Fed would leave rates unchanged later Tuesday fueled a 3.2 percent gain in HSBC. Shares of the Hang Seng index heavyweight have gained steadily since late June, mainly buoyed by growing optimism that U.S. interest rates have peaked.
Among other banks and property stocks, Bank of East Asia gained 1.1 percent, Hang Seng Bank added 2.6 percent, Henderson Land climbed 3.3 percent, and property conglomerate Cheung Kong rose 2 percent.
Telecom and hi-tech stocks retreated for a second day as investors took their cue from declines Monday in European telecom shares.
China Mobile, the mainland's leading wireless telecom firm, slipped 0.8 percent, while Internet and telecom company Pacific Century CyberWorks, which last week completed its acquisition of Cable & Wireless HKT, fell 1.6 percent.
Other markets
 Taiwan's Weighted index closed down 139.83 points, or 1.7 percent, at 8,118.05, ending five consecutive sessions of gains, as Typhoon Bilis approached the island.
Shares of chipmaker Taiwan Semiconductor fell T$1 to T$137, and rival United Microelectronics also slipped T$1 to T$84.50.
Australian's benchmark S&P/ASX 200 index rose 0.4 percent to 3,353.4 points. Thailand's composite SET index rose 1.2 percent, Jakarta's JSX advanced 0.5 percent, and Manila's PHS Composite edged up 0.3 percent.
In the currency market, the yen firmed slightly to ¥108.43 against the U.S. dollar, from ¥108.63 in late New York trading Monday. 
--from staff and wire reports
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