Oil prices rose after strong Chinese fuel demand halted a slide to 2003 lows triggered by the lifting of sanctions on Iran, while metals prices rose.
Concerns about Chinese authorities' ability to rebalance the slowing economy have rattled investors this year after a plunge in stock markets and the yuan currency raised concerns growth may be slowing more rapidly.
China's economy grew 6.9 percent last year, and 6.8 percent year-on-year in the fourth quarter, down from 6.9 percent in the third and the weakest pace since the first quarter of 2009, data showed.
Quarter-on-quarter, growth slipped to 1.6 percent in the last three months of 2015 from 1.8 percent in the third.
In a sign of slower growth to come, other data showed retail sales, industrial output and fixed-asset investment last month all came in below the expectations of analysts polled by Reuters.
European shares opened higher, led by miners after metals prices rose following the Chinese data.
The pan-European FTSEurofirst 300 index (FTEU3) rose 1.5 percent. The STOXX Europe 600 Basic Resources index (SXPP), which includes miners, added 4.1 percent.
"As figures weaken in absolute terms, we can potentially see additional stimulus measures. That is helping investors' appetite for risk," Philippe Gijsels, head of research at BNP Paribas (PA:BNPP) Fortis Global Markets, said.
MSCI's broadest index of Asia-Pacific shares outside Japan (MIAPJ0000PUS) rose 1.5 percent, rebounding from a four-year low touched earlier.
Chinese shares rose on strengthened expectations of more stimulus. The CSI 300 index of the largest listed companies in Shanghai and Shenzhen (CSI300) closed up 3.0 percent while the Shanghai Composite <.SSEC> gained 3.2 percent, after hitting a 13-month low on Monday.
"Economic weakness has been largely priced in," said Gu Yongtao, strategist at Cinda Securities.
"This year, exports and consumption could remain weak. Investment, another driver of growth, really depends on government's spending on infrastructure."
Tokyo's Nikkei index (N225) rose for the first time in four days, ending 0.6 percent higher.
The dollar gained against the safe-haven Japanese yen in anticipation of further action by Beijing, possibly as soon as next month.
The U.S. currency gained 0.4 percent 117.76 yen while the euro fell 0.1 percent to $1.0887. The Australian dollar, whose fortunes are closely linked to China, a major market for Australia, rose 0.6 percent to $0.603.
LOW-RISK
The rise in stock markets nudged yields on low-risk German government bonds higher. Ten-year yields rose 1.3 basis points to 0.48 percent.
Oil prices took heart from data showing Chinese fuel demand last year rose compared with 2014, rising 2.5 percent to 10.32 million barrels a day.
Brent crude (LCOc1), the global benchmark, rose 70 cents a barrel to $29.25. It hit lows not seen since 2003 on Monday on the prospect of Iranian output swelling a global glut.
Copper, of which China is the major consumer, rose 1.9 percent to $4,463 a tonne, having earlier hit a one-week high at $4,476 a tonne. Nickel prices also rose.
Gold held steady at $1,093 an ounce.
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