HONG KONG – Most Asian stock markets rose Wednesday amid growing hopes of a solution to Greece’s financial crisis. European shares were down modestly.

Major Asian markets added less than 1 percent as the region extended its gains for a fourth straight day. The dollar was little changed against the yen and the euro.

Worries about Greece’s ability to stabilize its finances have eased in recent days amid speculation European leaders will orchestrate a bailout and the government will take needed steps to reduce its mountain of debt.

Greece’s prime minister is set to announce deeper spending cuts later Wednesday. If the measures are tough enough, that could help pave the way for a lifeline when Greek and German leaders meet on Friday, analysts said.

Further helping sentiment were overnight gains in the U.S., where stocks rose a third day amid renewed confidence that business leaders expect the economic recovery to stick.

European markets were lower ahead of Greece’s announcement, with Britain’s FTSE 100 and Germany’s DAX off 0.2 percent. Wall Street futures pointed to a slightly stronger open in the U.S. Wednesday.

In Japan, the Nikkei 225 stock average edged up 31.30 points, or 0.3 percent, to 10,253.14.

South Korea’s Kospi was up 0.5 percent at 1,622.44 and Hong Kong’s Hang Seng lost 0.1 percent to 20,876.79.

Elsewhere, Australia’s market rose 0.7 percent, lifted by news the local economy grew at its fastest pace in nearly two years, signaling that the country has emerged from the worst of the global crisis easy online payday loans.

Indian stocks added 1.1 percent and Shanghai’s market was 0.8 percent higher.

Many Asian markets, after outshining Western ones last year, have lagged in 2010.

Lorraine Tan, head of equities research at Standard & Poor’s in Singapore, said periodic corrections of around 10 percent were still possible in Asia.

“Given the strong run-up last year, we’re expecting to see a much more mixed performance this year,” she said. “It will be a fairly volatile year.”

In currencies, the dollar fell 88.75 yen from 88.80 yen. The euro was off at $1.3612 from 1.3615.

Benchmark crude for April delivery was up 9 cent to $79.77 a barrel in Asia. The contract rose 98 cents to settle at $79.68 on Tuesday.

In the U.S. Tuesday, the Dow rose 2.19, or less than 0.1 percent, to 10,405.98. It is up 85 points in three days and is at its highest level since Jan. 20.

The broader Standard & Poor’s 500 index rose 2.60, or 0.2 percent, to 1,118.31, and the Nasdaq rose 7.22, or 0.3 percent, to 2,280.79.

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AP Writer Alex Kennedy in Singapore contributed to this report.

Asian stocks rise amid Greece hopes; Europe down

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