Asian stocks rose after US consumer confidence beat expectations and as factory output in Japan and South Korea gained, boosting optimism global demand will grow.

Yue Yuen Industrial Holdings Ltd, which makes shoes for Nike Inc, gained 1.4 percent in Hong Kong. Hynix Semiconductor Inc, a South Korean chipmaker, gained 1.2 percent, rising for a second day in Seoul.

Harvey Norman Holdings Ltd, Australia's largest electrical goods retailer, lost 4.2 percent in Sydney after its first-half earnings fell.

"The bull-market signs are broadening amid resilience in the US economy," said Nader Naeimi, a Sydney-based senior strategist at AMP Capital Investors Ltd, which manages nearly $100 billion. "Investor sentiment has gone from extreme pessimism to one of optimism. Europe didn't turn out as bad as the market was fearing because of the actions taken by the European Central Bank."

The MSCI Asia Pacific Index climbed 0.8 percent to 129.27 at 3:35 pm in Tokyo, up at least 20 percent from its low on Oct 5 and meeting the definition of a bull market.

It's headed for a 5.2 percent gain for the month. The measure has advanced for the past 10 weeks, its longest winning streak since its inception in 1988, on signs of US economic recovery and China's monetary easing.

Japan's Nikkei 225 Stock Average rose 0.7 point, or less than 0.1 percent. The nation's industrial production rose 2 percent in January from the previous month, beating the 1.5 percent median estimate of 31 economists surveyed by Bloomberg News.

Korean production

South Korea's Kospi Index rose 1.3 percent after the country's industrial production gained in January. Output increased 3.3 percent from December, beating the median estimate of 12 economists for a 0.5 percent drop. Australia's S&P/ASX 200 Index advanced 0.8 percent.

Singapore's Straits Times Index rose 0.7 percent and Hong Kong's Hang Seng Index gained 0.1 percent. The Shanghai Composite Index fell 0.7 percent on concern the government will retain measures to curb gains in housing prices this year.

The MSCI Asia Pacific Index gained 13 percent this year through Tuesday, compared with a 9.1 percent advance by the S&P 500 and an 8.1 percent increase by the Stoxx Europe 600 Index. Stocks in the Asian benchmark are valued at 15 times estimated earnings on average, compared with 13.2 times for the S&P 500 and 11.1 times for the Stoxx 600.

US confidence

Futures on the Standard & Poor's 500 Index slid 0.1 percent on Wednesday after the gauge advanced 0.3 percent in New York on Tuesday. The Dow Jones Industrial Average gained 0.2 percent to its first close above 13000 since May 2008.

The Conference Board's index of consumer confidence increased in February to the highest level in a year, figures from the New York-based research group showed on Tuesday.

Eurozone confidence in the economic outlook improved more than economists forecast in February.

An index of executive and consumer sentiment in the 17-nation eurozone rose to 94.4 from 93.4 in January, the European Commission in Brussels said on Tuesday.

Greece's parliament ratified a 3.2-billion-euro ($4.3 billion) package of spending cuts to the 2012 budget, bringing the nation a step closer to securing a debt bailout.

Yue Yuen rose 1.4 percent to HK$26.10 ($3.37) in Hong Kong, while Panasonic Corp, a Japanese electronics company, climbed 1.5 percent to 759 yen ($9.42). The appliance maker named a new president three weeks after forecasting a record net loss.

Hynix Semiconductor increased 1.2 percent to 30,200 won ($27.05) in Seoul. Samsung Electronics Co, South Korea's No 1 consumer electronics exporter, gained 1.8 percent to 1.206 million won.

Airlines rose as concern about higher fuel costs eased after crude prices declined. Air China Ltd, the world's biggest carrier by market value, gained 1.9 percent to HK$5.86 in Hong Kong, while China Eastern Airlines Corp advanced 2 percent to HK$3.

Oil for April delivery fell 1.9 percent to $106.55 a barrel in New York on Tuesday, declining for a second day after rising to a nine-month high.

Harvey Norman slid 4.2 percent to A$2.07 ($2.24) in Sydney after saying profit for the six months ended Dec 31 fell 2.1 percent to A$128.95 million.