Asian shares up strongly after gains in the US

Most Asian stock markets jumped Thursday, following gains on Wall Street after strong housing figures and a recovery in energy stocks.

Japan's benchmark Nikkei 225 stock index climbed 2.6 percent to 9,856.68 while South Korea's Kospi gained 1.4 percent and Hong Kong's Hang Seng index was 1.8 percent higher. Shares in Australia, Taiwan and Singapore also advanced.

The move higher in Japan came despite political uncertainty a day after Prime Minister Yukio Hatoyama said he would step down after only eight months in office. The ruling Democratic Party moved quickly to fill the void and was set to pick a new leader Friday, with Finance Minister Naoto Kan the leading candidate to head the party and likely become the new prime minister.

Asia's advance largely reflected a rebound in the U.S. on Wednesday, where the Dow Jones industrial average achieved its third-biggest gain this year. The Dow ended 2.3 percent higher at 10,249.54, while the broader Standard & Poor's 500 index rose 2.6 percent to 1,098.38, and the tech-heavy Nasdaq composite index also ended higher.

An upbeat report on pending home sales provided some hope for the U.S. housing market though the increase in signed contracts for homes was due partly to a rush to meet a tax credit that expired in April. The National Association of Realtors said its index of signed contracts for existing homes rose 6 percent.

Energy stocks bounced back sharply after selling off the day before when the U.S. government said it was starting criminal and civil investigations into the Gulf of Mexico oil spill, raising the possibility that oil companies might have to pay out huge fines, or see their operations hampered.

Shares in Europe fell Wednesday on concerns of how the debt crisis would affect European banks, but the strong showing in the U.S. help limit the damage.

In currencies, the dollar rose to 92.15 yen from 90.98 yen, while the euro strengthened slightly against the dollar, to $1.2290 from $1.2204.

Benchmark crude for July delivery was up 74 cents at $73.60 a barrel in electronic trading on the New York Mercantile Exchange.