OVERNIGHT

Across Asia Wednesday shares rallied as oil prices jumped to level not seen in nearly eight months as investors seemed to take the prospect of higher U.S. interest rates in stride and move more money into riskier assets.

Gold languished near a seven week low down $22.20 at $1228.60 as the threat of higher U.S. interest rates looms over the market. A stronger dollar usually translates into weaker gold prices.

Australian market up 1.8%, the Hang Send jumped 3.34%, the Nikkei moved 1.8% higher on a weaker yen and the South Korean Kospi edged up 1.1% and the Shanghai Composite eked out 0.3% gains in early trading.

Strong U.S. housing data gave markets a boost that investor further interpreted as giving the Fed room to hike rates. Sales of new homes in April hit the fastest pace in more than eight years, boosting the S&P 500 1.4%, it's largest gain in two months, the WSJ reported.

All was not good, however, as some pointed to Asian investors' skepticism that previous bout of volatility are a thing of the past. These analysts cited a recent increase in negative bet on the Hong Kong Hang Send.

The MSCI Asia Pacific benchmark of stocks has slumped nearly 5% from April as a rising U.S. Dollar rattles investments in many commodity and emerging-market assets. In Hong Kong, daily trading volumes have fallen to their lowest levels this year on uncertainties over the pace of U.S. rate increases, according to the WSJ.

Also on Wednesday, China's central bank led the yuan to its lowest rate against the buck in over five years, helping slow down gains on Shanghai equities as the dollar hit its highest level against the yuan in two months. Higher U.S. interest rates are expected to push the yuan lower still.