Asia Shares Track Wall St Higher as Inflation Worries Recede

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Asian shares climbed in morning trade on Tuesday, tracking a Wall Street rally overnight, while the dollar held near a fourthmonth low as investors tempered fears about inflationdriven rate hikes.

MSCIs broadest index of AsiaPacific shares outside Japan was up 1 at a twoweek high, after U.S. stocks ended the previous session with mild gains.

Australian shares were up 0.69, while Japans Nikkei stock index rose 0.6.

Chinese stocks hit a 212month high on financial services, consumer and tourism gains in morning trade. The bluechip CSI300 index jumped 1.89, while the benchmark Shanghai Composite Index advanced 1.39, reaching their highest levels since early March.

Hong Kongs Hang Seng index rose 1.05.

Markets were buoyed as data flow didnt live up to the stronginflation narrative, and amid repeated guidance from senior central bank figures that the current rise in inflation is temporary, ANZ analysts wrote in a note.

The U.S. national activity index reading of 0.24 against expectations above 1, along with dovish comments from Federal Reserve speakers, helped support the view that policy will remain on hold for some time.

Still, after global service sector surveys showed strong growth last Friday, all eyes will be on the release of U.S. personal consumption data on Thursday, the Feds preferred inflation measure.

Overnight, Wall Street closed higher, spurred by gains in tech stocks, with the sectors majors Apple up 1.33 and Microsoft up 2.29.

The Dow Jones Industrial…

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