TOKYO- Asian shares advanced on Tuesday, putting world equities on course to extend their bull run for a 12th consecutive session as optimism about the global economic recovery and expectations of low interest rates drive investments into riskier assets.
MSCI’s broadest index of Asia-Pacific shares outside Japan ticked up 0.45 percent while Japan’s Nikkei rose 0.4 percent to a 30-year high.
In Hong Kong, the Hang Seng Index surged 1.79 percent to hit a 32-month high in its first trading session since Thursday following the Lunar New Year holidays.
Mainland Chinese markets will remain closed for the holidays until Thursday while Wall Street was also shut on Monday.
Ord Minnett advisor John Milroy said while share markets were positive investors were becoming wary of the future risk of inflation due to central bank and government stimulus programs in place around the world.
“There is a clear sense with rates staying low for some time yet and investor appetite for equities staying strong we will likely see markets hold up for some time yet,” Milroy told Reuters.
“Gaining traction is the thought that inflation could rise much faster and sooner than the Fed is currently thinking. Then if they do raise rates to combat it what happens to equity markets and of course bond markets.”
The bullish view on the economy lifted bond yields, with the 10-year US Treasuries gaining 5 basis points to 1.245 percent in early Asian trade, its highest since late March.