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Hong Kong - Asian markets rose on Tuesday, boosted by positive inflation data from China, while Tokyo extended its winning streak as the yen sank to multi-year lows.
Wall Street also provided a strong lead ahead of the January-March corporate earnings season.
Tokyo was 0.51% higher by the break, Hong Kong climbed 1.03%, Sydney added 1.20%, Shanghai was 0.95% higher and Seoul was flat.
Beijing unveiled data Tuesday showing inflation came in at 2.1% in March, well down from the 10-month-high 3.2% seen the month before and below forecasts for 2.4%.
The news soothed investor concerns that another high figure would prompt the lawmakers to tighten monetary policy further.
"Markets were overly worried when headline CPI inflation jumped to 3.2% in February, so today's reading will definitely help alleviate the inflation and monetary-tightening concerns," Bank of America Merrill Lynch economist Lu Ting said in a note, according to Dow Jones Newswires.
Chinese shares have suffered in recent months owing to concerns about the world's number two economy, while the recent spike in inflation fuelled expectations the government would tighten monetary policy to prevent runaway prices.
Inflation is a key issue for the ruling Communist Party as it brings with it the risk of popular discontent and the threat of social unrest.
Japanese shares enjoyed another rally on the back of the tumbling yen - with the Nikkei sitting at highs not seen since August 2008.
Tokyo investors have gone on a buying spree since the Bank of Japan last week unveiled a huge stimulus package aimed at beating decades of deflation.
The yen has lost almost 8% since the bank announced its shift in monetary policy that will see a flood of cash hit financial markets.
In early trade the dollar bought ¥99.40 - levels not seen since May 2009 - from ¥99.36 in New York late on Monday.
The euro also jumped to a more than three-year high of ¥129.80, from ¥129.23 in US trade.
The European unit was also at $1.3053 compared with $1.3005.
New York trading ended on a positive note, providing more lift to Asia in anticipation of positive earnings reports.
The Dow rose 0.33% and the S&P 500 put on 0.63%, while the Nasdaq added 0.57%.
Oil prices rose, with New York's main contract, light sweet crude for delivery in May adding 29 cents to $93.65 a barrel and Brent North Sea crude for May up 51 cents to $105.17.
Gold was at $1 575.02 an ounce at 03:05 GMT compared with $1 577.10 late on Monday.
