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Asian shares up after Wall Street rally

Hong Kong - Asian markets rose on Tuesday following a Wall Street rally as traders shrugged off growing tensions between the West and Russia following Crimea's vote to opt for Kremlin rule.

After the weekend vote, the result of which was widely expected, attention moved to economic matters, with better-than-expected US data providing support as investors await the Federal Reserve's latest policy meeting.

Tokyo climbed 1.08% by the break thanks to a dip in the value of the yen, while Hong Kong gained 0.15%, Sydney added 0.61% and Seoul put on 0.34%. Shanghai was up 0.25%.

The United States and European Union on Monday slapped Russian President Vladimir Putin's inner circle with economic sanctions a day after Crimeans voted overwhelmingly to come into Moscow's fold.

Western governments said they will freeze assets of key Russian presidential aides and lawmakers and target Crimean "separatist" leaders as well as ousted former Ukrainian president Viktor Yanukovych.

And President Barack Obama warned of further measures if Moscow continues to interfere in Ukraine.

"The Ukraine situation remains delicate, but at least has not spilled over into violence, despite the opposition by Western powers," said Daiwa Securities senior strategist Tsuyoshi Nomaguchi.

However, Kathy Lien of BK Asset Management, said: "The bottom line is that it is very difficult to be optimistic under these circumstances because of the material risk that the crisis in the Ukraine will deepen."

After last week's heavy sell-off in New York, US shares bounced back on Monday. The Dow jumped 1.13%, the S&P 500 gained 0.96% and the Nasdaq added 0.81%.

US traders were buoyed by data showing industrial output increased more than expected in February, adding to a growing feeling that the world's number one economy is on a recovery track.

The Fed begins a two-day policy meeting Tuesday that analysts forecast will see a further cut in its stimulus programme.

On forex markets the dollar edged higher against the yen as investors grew more confident in higher-risk assets.

The dollar fetched ¥101.89 compared with ¥101.68 in New York on Monday. The yen is considered a safe haven and strengthens in times of economic or political uncertainty.

The euro bought $1.3933 and ¥141.87 against $1.3921 and ¥141.5.

Oil prices were mixed. New York's main contract, West Texas Intermediate for April delivery, eased 23 cents to $97.85 in early Asian trading while Brent North Sea crude gained 10c to $106.34 for its May contract.

Gold fetched $1 360.24 an ounce at 02:10 GMT compared with $1 378.76 late on Monday.

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