Asian Stocks Gain; Hang Seng Tacks on 2.1%

SEOUL, South Korea -- Asian stocks rose for a second day Wednesday, underpinned by better-than-expected U.S. earnings and optimism the regional economy is on the mend. European shares were higher.

Gains across the region were broad-based as recent pessimism about economic recovery gave way to relief that the U.S. corporate earnings season hasn't produced any big disappointments so far.

Investors have been focusing on earnings for clues about the state of the world's largest economy, currently mired in its deepest recession in decades. The big rally in world markets between March and June stalled in the past few weeks as data suggested any economic recovery would be a long, hard slog.

Japan's benchmark Nikkei 225 stock average rose 0.1% to 9,269.25 after gaining 2.3% the day before to snap a nine-session losing streak.

Hong Kong's Hang Seng jumped 2.1%, and South Korea's Kospi, the region's best performer, ended higher by 2.6%.

European stocks rose in early trading. The FTSE 100 index of leading British shares gained 1.3%, while Germany's DAX rose 1.5% and France's CAC-40 gained 1.3%.

Premarket futures in the U.S. suggest stocks will open higher on Wall Street Wednesday.

In the U.S., Goldman Sachs (GS Quote) reported second-quarter earnings Tuesday of $2.72 billion, up on last year's $2.05 billion, and easily surpassing forecasts thanks to big gains in trading and underwriting. Other big U.S. banks, such as Citigroup (C Quote) and Bank of America (BAC Quote), will be reporting earnings later this week.

The Dow Jones Industrial Average rose 27.81, or 0.3%, to 8,359.49. The broader S&P 500 index rose 4.79, or 0.5%, to 905.84, while the Nasdaq composite index rose 6.52, or 0.4%, to 1,799.73.