Portugal Colonial - Global markets follow US lead with gains

US markets finished Wednesday higher, snapping a three-day losing streak, with the tech-rich Nasdaq closing up 1.4 percent.

The Dow Jones Industrial Average and the S&P 500 also closed higher, while European indices ended little changed.

Positive sentiment continued in Asia, with Tokyo up by more than one percent at the close. Hong Kong ended only marginally up.

Singapore, Jakarta and Kuala Lumpur were also up. Markets in mainland China were closed for a week-long holiday.

"The US market saw gains driven by weak economic data, alleviating worries about prolonged elevated interest rates," noted Stephen Innes, managing partner at SPI Asset Management.

"As a result, Asian markets responded with a risk-friendly bounce."

The 10-year US Treasury note, which hit a 16-year peak on Tuesday, had retreated following a lacklustre US hiring report from payroll firm ADP.

The note is a closely watched proxy for interest rates, and the recent surge comes amid fears the Federal Reserve will keep rates elevated for longer.

At the open, London, Frankfurt and Paris also crept up.

Michael Hewson, chief market analyst at CMC Markets UK, said the rises were expected to continue.

"This rebound in US markets has translated into a rebound in Asia markets and looks set to translate into a positive start for European markets this morning as we look ahead to the latest German trade import and export data for August, as well as French industrial and manufacturing production data, all of which are forecast to show weak economic performance for both," he said.

The easing of Treasury yields was helped by economic data that prompted traders to scale back forecasts for Federal Reserve tightening this year.

All eyes will be on Friday's release of employment figures, with the overall health of the economy factoring in Fed rate decisions.

"The US labour market is set to remain in the spotlight today," Hewson added, "as well as tomorrow when we get the September non-farm payrolls report, which after yesterday's slowdown in the ADP numbers, could set the seal on another rate hike in November, or keep markets guessing ahead of next week's CPI report".

- Key figures around 0830 GMT -

Tokyo - Nikkei 225: UP 1.80 percent at 31,075.36 (close)

Hong Kong - Hang Seng Index: UP 0.10 percent at 17,213.87 (close)

Shanghai - Composite: Closed for a holiday

London - FTSE 100: UP 0.45 percent at 7,445.83

Euro/dollar: UP at $1.0513 from $1.0510

Pound/dollar: DOWN at 1.2124 from 1.2145

Euro/pound: UP at 86.71 pence from 86.54 pence

Dollar/yen: UP at 148.95 yen from 148.74 yen

Brent North Sea crude: UP 0.05 percent at $85.85 per barrel

West Texas Intermediate: UP 0.04 percent at $84.25 per barrel

New York - Dow: UP 0.4 percent at 33,129.55 points (close)

J.Pereira--PC