Positive U.S. manufacturing data and a jump in oil prices on Tuesday pushed a leading gauge of global stocks to its highest in nearly two months.

Bank shares in the U.S. were up more than 3 percent after the strong data rekindled hopes that the Federal Reserve would raise rates later this year. U.S. construction spending rose to the highest level since October 2007 and the U.S. manufacturing sector outpaced analysts’ expectations across the board.

Asian Shares

Asian shares rallied to two-month highs on Wednesday as overnight gains in oil prices and positive economic data from Australia to the United States calmed fears of a global economic slowdown.

Stock markets across the region led by Japan and Hong Kong, were in the black with news out of China of a cut in bank reserve requirements and structural reforms helping to build public sentiment.

The Nikkei 5 was up 4 percent and Hong Kong’s Hang Seng Index by 2.6 percent while MSCI’s broadest index of Asia-Pacific shares outside Japan rose 2 percent to its highest levels since Jan. 7.

The Dow Jones industrial average rose 348.58 points, or 2.11 percent, to 16,865.08, the S&P 500 gained 46.12 points, or 2.39 percent, to 1,978.35 and the Nasdaq Composite added 131.65 points, or 2.89 percent, to 4,689.60.

According to said Geoff Lewis, Hong Kong-based senior strategist at Manulife Asset Management, “While we remain cautious on the outlook, we don’t think the global economy is going to tip into a recession. Much of the bad news is already priced into markets offering investors areas of opportunity.”