Asian Shares Gain Led By Technology Stocks

(RTTNews) - Asian stocks rose on Tuesday after a drop in Treasury yields helped spur a rally in technology stocks on Wall Street overnight.

Regional gains, however, remained capped ahead of key U.S. inflation data ad bank earnings due this week.

The dollar steadied in Asian trade, helping gold prices recover from a three-week low. Oil ticked higher after tumbling around 4 percent in the U.S. trading session on demand worries.

Chinese shares eked out modest gains as traders ramped up bets on more monetary easing this year.

The benchmark Shanghai Composite index edged up 0.20 percent to 2,893.25 as authorities indicated they may lower the amount of money banks must set aside as reserves to boost lending.

Hong Kong's Hang Seng index finished 0.21 percent lower at 16,190.02 after a choppy session.

Japanese markets rallied as traders returned from a holiday break.

The Nikkei average jumped 1.16 percent to 33,763.18, reaching its highest level since March 1990. The broader Topix index settled 0.82 percent higher at 2,413.09.

Tech stocks surged, with Tokyo Electron and Advantest gaining 3.3 percent and 6 percent, respectively. Nintendo jumped 4.4 percent on reports it may launch the next-gen Switch console, potentially called "Switch 2," this year.

Sony rose 1.3 percent after reports that it may cancel the merger deal of its India unit with Zee Entertainment Enterprises.

In economic releases, inflation in Tokyo slowed for a second month in December, while household spending dropped for the 13th consecutive month in November, separate data revealed.

Seoul stocks inched lower, with the Kospi average closing down 0.26 percent at 2,561.24 - falling for a fifth consecutive session due to extended selling spree by institutions.

Samsung Electronics fell 2.4 percent after posting its sixth straight quarter of declining operating profit.

Australian markets advanced to snap a four-day losing streak after retail sales topped forecasts.

The benchmark S&P/ASX 200 index climbed 0.93 percent to 7,520.50 in its best day since Dec. 14 ahead of November inflation data due on Wednesday. The broader All Ordinaries index closed 0.95 percent higher at 7,749.50, led by mining and banking stocks.

Alumina soared 7.7 percent as Alcoa announced its decision to curtail output in at one of its three Western Australian refineries.

Across the Tasman, New Zealand's benchmark S&P NZX-50 index closed up 0.93 percent at 11,844.39, its highest close since early August.

U.S. stocks ended on a buoyant note overnight after a New York Federal Reserve report said consumers expect lower inflation as well as weaker income and spending over the next several years.

Meanwhile, Atlanta Fed President Raphael Bostic reiterated his expectation of two rate cuts by the Fed this year.

The tech-heavy Nasdaq Composite surged 2.2 percent, its best day since November on the back of lower Treasury yields and Nvidia's CES announcements. The S&P 500 rallied 1.4 percent and the Dow rose 0.6 percent.