Asian markets rebound from big losses

Asian markets climbed Tuesday following a big sell-off in the previous session and as traders took heart from a rally on Wall Street that saw the Dow close within sight of a record high.

Shanghai failed to make noticeable inroads into Monday's huge losses as China's annual parliamentary gathering kicked off, where outgoing Premier Wen Jiabao outlined the country's economic targets for the year.

Tokyo added 0.75 percent by the break, Hong Kong rose 0.42 percent, Sydney was 1.48 percent higher, Shanghai was up 0.62 percent and Seoul advanced 0.56 percent.

Investors cheered a positive lead from New York, where the Dow rose 0.27 percent to 14,127.82, within 40 points of an all-time high seen in October 2007.

Remarks from the Federal Reserve's number two official reaffirming its aggressive stimulus policy provided support to US shares.

Janet Yellen, vice chairwoman of the Fed board of governors, said in a speech that the central bank intends to "keep monetary policy highly accommodative until well into the recovery".

The S&P 500 gained 0.46 percent and the Nasdaq was up 0.39 percent.

Traders also appeared to shrug off the lack of action in Washington on dealing with the "sequester" of US federal spending cuts that came into effect on Friday and which could shave around 0.5 percentage points off growth.

Analysts said the effect of the $85 billion in cuts would not be seen yet, giving politicians a little time to agree a less stringent budget that would help slash the country's deficit.

On currency markets the dollar bought 93.40 yen in early trade against 93.46 yen in New York late Monday.

The euro fetched 121.65 yen and $1.3030 compared with 121.74 yen and $1.3024.

In China, dealers were looking to the National People's Congress, which opened Tuesday with Wen saying the government would target growth of 7.5 percent for the world's number two economy in 2013 and 3.5 percent inflation.

"We should energetically change the growth model," Wen said in his last address amid demands that China revamp its investment and export-led growth in favour of domestic spending.

A separate government document laid down a 10.7 percent rise in defence spending to 720.2 billion yuan ($115.7 billion) in 2013.

While Shanghai began the day on a high the gains were not enough to clear the 3.65 percent loss suffered Monday when property and construction stocks were sold after the government set out rules aimed at capping house prices.

Oil prices rose, with New York's main contract, light sweet crude for delivery in April, adding 21 cents to $90.33 a barrel and Brent North Sea crude for April delivery increasing 24 cents to $110.33.

Gold was at $1,578.60 at 0230 GMT compared with $1,577.65 late Monday.