Markets across the region were higher, led by record closings in Singapore, Australia and China. Thai shares missed the regional rally.

The Nikkei 225 Index ended 0.8% higher, rising 144.59 points to 17,897.23, its highest level since May 2000. The Topix index rose 11.40 points, or 0.7%, to 1,776.71.

Gains followed Federal Reserve Chairman Ben Bernanke's comments before Congress Wednesday to the effect he's comfortable with current interest rate levels and believes inflationary pressures are on easing. The comments helped lift the Dow Jones Industrial Average to a record close of 12,741.86.

Japanese stocks advanced as government data showed the economy expanded 4.8% on an annualized basis in the quarter ended Dec. 31. Compared with the preceding quarter, the economy expanded 1.2%, the data showed.

Economists had expected a 3.8% annualized rise, and a 0.9% quarterly increase. For 2006, Japan's economy grew 2.2%, its seventh straight year of expansion. Consumer spending, meanwhile, rose 1.1% on quarter, reversing a 1.1% drop in the July-to-September quarter.

"Japan's domestic demand is more robust than expected," said Takuji Aida, chief economist at Barclays Capital in Tokyo. "The economy grew about 2% in the second half; that should help Japan's stock market because it shows economic growth could go on much longer than expected without overheating."

Around the region, Australia's S&P/ASX 200 added 0.5% to end at a record 5,992.80. Shares of Telstra Corp. added 3.9% after Australia's dominant phone company reported a narrower-than-expected decline in first-half net profit.

Singapore's Straits Times Index rose 1.5% to end at a closing and intraday record of 3,252.49. In China, Shanghai's Composite Index jumped 3% to a record 2,993.01.

South Korea's Kospi index added 0.5% and Taiwan's Weighted Price Index firmed 0.9%. Indonesia's JSX Composite gained 2.3%, Thailand's SET Index fell 0.6% and India's Bombay Sensex was up 2.5%. New Zealand's NZSX-50 added 0.3%.

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