In today’s market report… a Chinese manufacturing rebound and better than expected Australian growth boosted Asian markets Wednesday.

The encouraging economic news sparked optimism that the region could shake off a slowdown in the U.S. and Europe.

China's purchasing managers' index rose in August from a 17-month low, while Australia's GDP grew 1.2 percent in the second quarter.

The Australian share index added to gains after the strong growth was announced, led by mining giants BHP Billiton and Rio Tinto.

Banks also bounced back from losses Tuesday, while the Australian dollar gained on the prospect of higher interest rates ahead.

Japanese shares climbed back from 16-month lows, although market confidence was thin with the yen just off a 15-year peak.

Technology giant Hitachi rose after sources said it was planning an initial public offering of its hard-drive unit in the U.S., possibly by year-end.

Separately, Spain's prime minister said on a visit to Japan that sovereign bond auctions show the government is able to meet its financing needs and will meet targets to reduce its budget deficit.