Asian shares rose on Tuesday after rallies in U.S. stocks and positive U.S. data cheered investors, while the euro inched up on hopes for some progress in the euro zone debt crisis. U.S. stocks climbed on Monday after earnings from Citigroup Inc, the third-largest U.S. bank, as well as retail sales data strongly beat expectations.

European equities edged up on Monday, underpinned by expectations Spain is moving closer to asking for a bailout and news that Greece is seeking to bridge the gap on its austerity measures with its lenders at this week’s European Union leaders’ meeting. Still, officials said talks would most likely not be completed at the EU summit.

Greece’s benchmark 10-year bond yield fell to its lowest since August 2011 at 17.51 percent on Monday, as investors scaled back bets the country will leave the euro zone. Stock investments are supported by the fact that Europe now has a safety net in place to prevent its debt crisis from spinning out of control, said Masahide Tanaka, deputy general manager of asset management business planning department at Mizuho Trust & Banking Co Ltd.

Global monetary easing and recent positive U.S. data have also helped ease concerns about growth slowdown, warming investor risk appetite, he said.The MSCI index of Asia-Pacific shares outside Japan rose 0.5 percent. Australian shares climbed 0.7 percent to a 14-month peak as investors pinned hopes on further easing by the Reserve Bank of Australia, but the index last traded up 0.2 percent. The early gain came after the central bank said it cut interest rates this month following a pullback in mining investment and a darker global outlook that threatened domestic growth.

Meanwhile, most Asian stocks bounced back with smart gains on Tuesday after rallies in US market and positive US data cheered investor mood, with hopes for some progress in the euro zone debt crisis also helping to underpin sentiment. Further, ease in China’s inflation data in September also boosted the sentiment, leaving more leeway for the government to bolster economic stimulus to fastrack growth.

Among the Asian stocks, Japan’s Nikkei 225 was trading higher by 0.85 per cent. Hong Kong’s HANG SENG INDEX gained 0.04 per cent, while Shanghai Composite was slightly under pressure, down 0.06 per cent at 08:23 AM IST. On Monday, the key domestic benchmarks witnessed a smart rebound in late session as the Sensex closed higher amid strong cues from European markets.

European stock markets rose after China’s inflation eased in September, leaving more leeway for the government to bolster economic stimulus to fastrack growth. Investors were also eying the US retail sales data later today. However, downbeat inflation data dimmed the chances of an imminent RBI rate cut, stemming the gains in the Sensex. India’s annual inflation surged to a 10-month high in September at 7.81 per cent, up from 7.55 per cent in August.

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