Markets in the Asia-Pacific clawed back some of the previous day's losses, as investors bet American lawmakers would manage to salvage a bailout package to stabilise the country's troubled financial industry.
At 5.20pm, the New Zealand share market was up 97 points, or 3.1%, to close at 3188 on turnover of $130 million.
Telecom was up 9 cents to $2.82, while fellow market heavyweight Contact Energy rose 12c to $7.94. Fletcher Building jumped 51c to $7.16.
Hallenstein Glassons was up 10c to $2.60 after it announced it had appointed an acting chief executive, following the departure of short-lived boss Shayne Quanchi. The Warehouse climbed 17c to $3.19.
PGG Wrightson was up 29c to $1.89, after announcing that extreme financial market conditions have prevented it from buying a 50% stake in Silver Fern Farms.
The Australian stock market recouped almost all of its losses by the close of trading on Wednesday, led by strong gains in mining shares and a recovery in the financial sector.
At the 1615 AEST close, the benchmark S&P/ASX200 was up 194.1 points, or 4.22%, at 4794.6, while the broader All Ordinaries gained 183.2 points, or 3.96%, to 4814.5.
Spot gold was trading in Sydney at $US879.90 an ounce at 1630 AEST, down $US23.20 on Tuesday's close of $US903.10.
In Japan, share prices closed up 0.96% on growing hopes of a new US financial rescue package. The Tokyo Stock Exchange's benchmark Nikkei-225 index rose 108.40 points to end at 11,368.26, a day after sliding 4.1% to hit a three-year low.
Wall Street rallies
Wall Street rallied on Tuesday as investors bet Washington would revive a plan to stabilise the financial sector.
The markets on Monday had their worst sell-off in 21 years, after the US House of Representatives voted against a $US700 billion bailout.
The Dow Jones industrial average plunged by a record 777 points on Monday.
However, the Dow rallied 485.21 points, or 4.68%, to 10,850.66 on Tuesday as the market recouped more than half the losses from the previous day.
Standard & Poor's 500 Index jumped 58.35 points, or 5.27%, to 1,164.74. The Nasdaq Composite Index climbed 98.60 points, or 4.97%, to 2,082.33.
European markets up
The FTSEurofirst index of leading European shares ended up 1.59% at 1,063.65 on Tuesday.
In London, the FTSE 100 index of leading shares finished with a gain of 1.74% at 4,902.45 points.
The Paris CAC 40 rose 1.99% to 4.032.10 points and Frankfurt's DAX added 0.41% to 5,831.02 points.
