It was another good day for US markets with the Nasdaq Composite Index reaching its best close in over a year after upbeat news from tech companies while investor hopes continue that the economy is on track for a recovery.

The technology-laced Nasdaq Composite Index closed 21 points higher at 1,761, its best close since April last year. Meanwhile the Dow Jones industrial average closed 16 points ahead to 9,428.90, while the Standard & Poor's 500 Index climbed 2 to close at 1,002.

The sun was shining on technology group Broadcom, which said its revenue for the current quarter would rise about 10% from the last quarter. However some of the shine was wiped off the sector when tech bellwether Hewlett-Packard posted disappointing quarterly results after the closing bell.

Economic data boosted the markets after a report showed US housing starts at a 17-year high last month. A separate report from the University of Michigan on US consumer sentiment showed a disappointing fall in August but investors overlooked the news.

Meanwhile Asian markets advanced with Japan's Topix index reaching over 1,000 for the first time since 18 July 2002.

Taiwan's TWSE Index rose, led by hopes that sales in computer chip will rise.

Companies like NTT DoCoMo advanced on the back of renewed confidence that an economic recovery is not far away.