However, Thailand's benchmark SET Index tumbled as much as 3.8% as trading resumed for the first time since Bangkok was rocked by a series of bombs on New Year's Eve that killed three people and injured dozens more. The Thai market, along with much of the region, was shut on Monday and Tuesday for New Year holidays.

Japan's stock exchanges remained closed for national holidays. They are scheduled to re-open Thursday. Financial markets in China are also closed for the holiday and will reopen Thursday.

Among those bourses trading on Wednesday, Singapore's Straits Times Index rose 1.7% to 3,037.74, breaching the 3,000-point level for the first time. Government data showed the economy expanded at an annualized 7.6% rate in the fourth quarter, up from 5.6% growth in the third quarter.

And Hong Kong's Hang Seng Index ended 0.5% higher, rising 103 points to a record 20,413.99. The Hang Seng China Enterprises Index, Hong Kong's benchmark for China shares, extended its New Year gains into a second consecutive session, rising 1.3%, or 132.66 points, to 10,766.08.

"People are still quite optimistic about the short-term outlook," said Y.K. Chang, a fund manager with Philip Asset Management in Hong Kong.

He added the Hong Kong trading session was marked by rising intraday volatility, reflecting investor skittishness after weeks of strong gains.

"Many people are afraid of a sudden turnaround in the market, but nobody knows where the peak is, so when share prices turn down we are seeing sharp selling," Chan said. "We are now in the beginning of the year and people are beginning to build up their portfolios, so that means a lot of shares are changing hands and that means a lot of volatility."

Elsewhere around the region, the benchmark Philippine Stock Exchange Index rose 1.4% to end near a 10-year high.

South Korea's Kospi slipped 1.8% after the government forecast export growth will slow to 10.4% this year, down from 14.6% growth in 2006.

New Zealand's NZSX-50 index eased 0.2% and Taiwan's Weighted Price Index ended 0.04% lower. Malaysia's KLSE Composite rose 1.7%, Indonesia's JSX Composite shed 0.1% to 1,834.71 and India's Bombay Sensex gained 0.5% to 14,014.92.

In commodities, gold and oil futures were little changed throughout the day, with volumes relatively thin as many traders were away on holiday or awaiting cues from U.S. after an extended four-day closure in financial markets there.

Front-month crude-oil futures fell as much as 60 cents to $60.45 a barrel in electronic trading. Spot gold fell $2.70 to $637 an ounce.

U.S. markets were scheduled to re-open later in the day Wednesday. They were closed on Monday for the New Year's holiday and on Tuesday in observance of a state funeral for former President Gerald Ford.

Analysts said Hong Kong was enjoying large fund inflows from investors seeking to buy stakes in the China growth story.

"There is fresh cash coming into the market," said Miles Remington, head of sales trading at BNP Paribas in Hong Kong. "Investors are looking at the very positive response to the first day of trading in 2007 on Tuesday and with the China markets closed you are still seeing a lot of people playing China through Hong Kong until they get the opportunity to start trading back in Shenzhen and Shanghai tomorrow."

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