Asian shares inched higher for a fourth straight session as investors held out hope for a bailout package for debt-ridden Greece. But trade was lackluster with investors sidelined ahead of key U.S. jobs data due out on Friday.
Japan's Nikkei stock average clawed up 0.2 percent on Wednesday as gains in resource shares on strong metals prices offset falls in exporters after the yen rose to a more than two-month high against the dollar.
Toyota Motor gained over 3 percent on short-covering after a drop in its February U.S. sales of nearly 9 percent was better than had been expected given the company's massive recall and the ensuing fallout.
The benchmark Nikkei rose 23.56 points to 10,245.40, while the broader Topix rose 0.2 percent to 904.16.
The dollar fell to its lowest in more than two months against the yen on Wednesday as investors cut long positions versus other currencies. Investors fret about a stronger yen because it eats into exporter profits when repatriated.
Astellas Pharma fell 1.1 percent to 3,240 yen after it sued OSI Pharmaceuticals [ to prevent the U.S. biotech company from using a poison pill or other defense to block its $3.5 billion hostile takeover attempt.
Seoul shares were rangebound on Wednesday, with Hyundai Motor and Kia Motors advancing on the back of strong sales data, but caution about factory output data due later in the day capped gains.
January factory output data, may reaffirm the market view that Asia's fourth-largest economy has lost recovery momentum.
The Korea Composite Stock Price Index edged up 0.2 percent at 1,618.85 points.
Kia Motors rose 2.5 percent to 22,400, the highest level since February 2006.
Kia and its affiliate Hyundai Motor reported a jump in February sales, while U.S. sales at Japanese rival Toyota Motor, hurt by a safety crisis. Shares in Hyundai were 0.4 percent higher.
Australian shares climbed, with miners powering gains on the benchmark S&P/ASX 200 index. Latest economic data that showed the economy grew by a brisk 0.9 percent last quarter, also boosted market sentiment.
Firmer commodity prices gave Rio Tinto and BHP Billiton a lift. Gold miners Lihir Gold and Newcrest Mining gained 5 percent and 1.4 percent respectively, as gold rallied on lingering uncertainty over European sovereign debt.
The S&P/ASX 200 index was up 42.2 points at 4,742.60.
HK Struggles but HSBC Recovers
In China, the Shanghai Composite erased early losses to climb 0.3 percent, but caution prevailed ahead of parliament sessions due to start Friday.
Hong Kong's Hang Seng Index, a favorite among foreign investors, was marginally higher with HSBC gaining more than 1 percent as investors covered short positions after Tuesday's sharp fall.
HSBC stocks tumbled 7 percent on Tuesday after Europe's biggest bank posted disappointing 2009 results.
Standard Chartered jumped 2.5 percent ahead of the release of its 2009 results later Wednesday. The Asia-focused bank is expected to report a pre-tax profit of $5.1 billion, up 6 percent on the year.
Taiwan stocks rose 0.3 percent on Wednesday, joining gains across other Asian bourses on hopes of an end to Greece's debt problems, but smartphone maker HTC fell as much as 3 percent following a patent lawsuit by Apple .
The main TAIEX share index was up 22.96 points to 7,620.58, extending gains from a more than one-week closing high in the previous session.
HTC trimmed losses to stand about 1.5 percent lower after having fallen more than 3 percent at the open after Apple's suit. HTC said the suit would not have an impact on its financial guidance for the first quarter.
In Southeast Asia, the Straits Times Index and KL Composite were softer, falling 0.1 percent and 0.2 percent respectively.
Shares of Singapore Exchange slipped 0.8 percent despite news its unit, the Singapore Commodity Exchange, secured a new license that will allow it to operate a commodities market and clearing house
