Asian Stocks Rally on Positive Europe News

Asian stock markets rallied in early trading Thursday on easing worries over Europe’s debt crisis after Spain announced a plan to cut its big deficit.

Japan’s benchmark Nikkei 225 stock average rose 166.11 points, or 1.6 percent, to 10,560.14. Sentiment in Tokyo was also upbeat on improving corporate earnings.

South Korea’s Kospi increased 1.4 percent to 1,686.80. Australia’s S&P/ASX 200 index was up 1.1 percent at 4,650.70.

A rally in Asia followed overnight gains on Wall Street as the Dow Jones industrial average climbed 148.65 points, or 1.4 percent, to 10,896.91 — the highest level since May 4.

Amid global jitters over Greece’s debt crisis, Spain has come under intense pressure to take strong measures to slash its big deficit. Spain’s Prime Minister Jose Luis Rodriguez Zapatero outlined Wednesday a raft of deficit-cutting measures including cuts in public sector pay.

TOKYO (AP)