Asian shares hit fresh highs on Wednesday, extending the previous day's rally after a record close for the Dow Jones stock index on upbeat U.S. economic news boosted risk appetite further.
Australia's ASX 200 index and Japan's Nikkei both hit fresh four-and-a-half-year highs, South Korea's Kospi rose 0.2 percent to trade 20 points within reach of an 11-month peak and the Shanghai Composite continued its rebound from Monday's six-week low.
Data on Tuesday showing the U.S. services sector grew last month at its fastest pace in a year and a pledge by China's government to boost spending in 2013 lifted hopes of a global economic recovery, fueling a rally in global markets that has been driven by aggressive monetary easing by major central banks.
Some analysts warn that the rally may be the beginning of a bubble. U.S. shares are up almost 7 percent since the start of the year, European markets have gained about 5 percent, while in Asia, Japanese shares have soared almost 13 percent.
"I think stocks could very well rally through the rest of this year, even into 2014 based on this wave of money, but at some point it will pop and collapse, and that's what investors need to bear in mind," said Jim Rickards of Tangent Capital on CNBC Asia's "Squawk Box."