Investor kept calm on Wednesday as geopolitical risks diminished after U.S. President Barack Obama eased fears of any immediate military action on Syria.
Markets consolidated the gains seen over the past two days which came after a Russian offer to push Syrian President Bashar Assad to put chemical weapons under international control.
In an internationally televised address on Tuesday in the U.S. Obama said Congress would delay a vote on whether or not to pursue a military strike on Syria. He added that he would work with Russia, China and American allies to force Syria to hand over its chemical weapons.
His dovish rhetoric helped boost risk sentiment in Asia, powering Japanese stocks to a seven-week high before paring gains, while Australian stocks surged to their highest level in three-and-a-half months.
In Europe, sentiment was largely positive with the pan-European FTSEurofirst 300 index tipping into the green.
Tony Nash, managing director of IHS Consulting in Asia, said in a tweet that risk appetite seemed to have returned.
"Syria strike seems to be off, China data looking good, and the taper is likely benign (if it happens in September). Markets back in a risk on mood?" he said.