Asian stock markets rallied on Wednesday as sentiment was boosted by a successful Spanish debt auction and strong global growth forecast from the International Monetary Fund (IMF). 

The Japanese benchmark Nikkei rallied 2.14 percent or 202.55 points to 9,667.26, Hong Kong's Hang Seng gained 1.06 percent or 218.42 points to 20,780.73 and Chinese Shanghai rose 1.96 percent, while Indian benchmark BSE Sensex advanced 0.20 percent.

Major indices in the US and Europe rallied on Tuesday on positive news from Europe. Concerns over the Eurozone debt crisis slightly eased after the successful Spanish bond auction. The yields on the 10-year bond fell below the 6 percent level, while an improved sentiment reflected in a German survey also lifted sentiment.

The IMF Tuesday raised its global growth forecast despite a persisting Eurozone debt crisis. In its World Economic Outlook, the funs raised its global growth forecast to an annual rate of 3.5 percent in 2012 and 4.1 percent in 2013, up from its prior estimation of 3.3 percent in 2012 and 4.0 percent in 2013.

In Japan, exporter companies rallied on weaker yen, which helps the nation’s export sector by making its products cheaper to consumers around the world. Toyota Motor Corp. gained 2.78 percent and Honda Motor Co. surged 3.87 percent, while Canon, Inc. advanced 3.24 percent.

In Hong Kong, banking and energy sector companies led the really. HSBC Holdings advanced 1.86 percent and Industrial & Commercial Bank of China gained 0.58 percent, while PetroChina Co. surged 2.36 percent.

Indian stocks advanced for the third straight session, led by gains from financial and auto shares. HDFC Bank advanced 1.14 percent and Tata Motors surged 2.70 percent.

Meanwhile, better-than-expected earnings from chip giant Intel and top investment bank Goldman Sachs also boosted regional tech and financial shares. TDK Corp. surged 3.73 percent and Tokyo Electron gained 2.74 percent in Tokyo, while Samsung Electronics surged 3.52 percent in Seoul.

Among the financials, Mizuho Financial Group surged 3.17 percent and Mitsubishi UFJ Financial Group advanced 2.85 percent while Woori Finance advanced 0.4 percent.