Wall Street’s strong gains overnight were a shot in the arm for Asian stock markets on Tuesday. The positive undertone for equities extended to the second straight day of the New Year with key bellwether indices in the region chalking up gains.

The Dow Jones Industrial Average started the New Year on a strong note, gaining nearly 156 points overnight. Sentiment was given a lift by stronger than expected manufacturing data in December 2009, which showed the sector expanding at the fastest pace since April 2006. The rebound in manufacturing activities last month was mirrored in other countries including China, the euro zone and UK.

The upbeat data supported prevailing expectations of a global economic rebound and fuelled prices for commodities. Crude oil futures in electronic trading on the New York Mercantile Exchange traded just below US$82 per barrel, near the high for 2009. Meanwhile, crude palm oil futures traded on the Bursa Derivatives stayed well above the RM2,600 per tonne level.

Shares on the Bursa Malaysia traded broadly higher for the second consecutive day this week. Market breadth was positive throughout the trading day while the key benchmark index, the FBM KLCI was also sharply higher.

Gaining stocks outnumbered losing ones by a ratio of more than seven to two at the close. Some of the notable gainers include Ho Hup, Tanjong plc, KL Kepong, PPB, IJM, Parkson, Tan Chong, Bursa Malaysia and Public Bank. The better showing by blue chips lifted the FBM KLCI 12.5 points higher to close at 1,288.2.

The bulk of the trading activity was, however, in lower liner stocks. Compugates was, by far, the most actively traded counter for the day. Other heavily traded stocks include L&G, SAAG, KNM, Tan Chong-CA, Inix Technologies and Green Packet-WA.

Trading volume surged to the highest level in nearly six months. More than 1.86 billion shares changed hands on Tuesday.