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Asian stocks higher as earnings season starts

Hong Kong - Asian markets extended their gains on Tuesday following a mixed lead from Wall Street as investors await the release of key US data later in the week.

While trade was quiet the advances were fuelled by upbeat corporate earnings, with Japan's Nikkei helped by a weakening yen.

Tokyo rose 0.53%, Hong Kong gained 0.40%, Shanghai was 0.10% higher and Seoul put on 0.69%. Sydney was flat.

Kuala Lumpur, Jakarta, Manila and Mumbai were closed for public holidays.

As Asia's earnings season kicks into gear Japanese firms have fared positively so far. Car giant Nissan on Monday was the first big name to report, announcing a 37% jump in net profit thanks to strong overseas sales. Nissan shares rose 3.4% on the news early Tuesday.

"Corporate earnings have been improving steadily helped by domestic consumption and capex (capital expenditure)," Shun Maruyama, chief Japan equity strategist at BNP Paribas Securities, told Dow Jones Newswires. "We can anticipate a gradual rising trend."

The Tokyo market also got support from data showing that a recent decline in household spending eased to 3.0% year-on-year in June, which was much smaller than the 8.0% dive in May and the 4.6% loss in April.

Hiroichi Nishi, general manager of equity at SMBC Nikko Securities, said investors were worried Japan's sales tax hike in April could weigh on results but "excessive concerns are receding".

On foreign exchange markets the euro was marginally higher against the dollar and yen but was still wallowing near multi-month lows.

The single currency bought $1.3439 and ¥136.92 against $1.3438 and ¥136.87 in US trade Monday

The dollar was ¥101.8, compared with ¥101.85.

On Wall Street the Dow rose 0.13%, the S&P 500 was a tad higher and the Nasdaq dipped 0.10%.

Investors are now awaiting the release of key US data, including on second-quarter growth and jobs creation, which will give a better idea about the state of the economy.

On Wednesday the Federal Reserve will hold its latest board meeting, with bank head Janet Yellen facing calls to embark on a tighter monetary policy to quell what some analysts warn are overheated asset markets and bubbles in some sectors.

More economists suggest say the Fed bring forward its plan to lift interest rates to the end of this year, instead of late 2015 as previously indicated.

Richard Fisher, the hawkish head of the Federal Reserve's Dallas branch, said in a newspaper piece on Sunday that the country is experiencing financial excess that is of our own making".

In oil trade US benchmark West Texas Intermediate for September delivery was down 18 cents to $101.49 in mid-morning Asian trade, and Brent crude for September eased 1c to $107.56.

Gold fetched $1 304.49 an ounce by 02:15 GMT compared with $1 304.00 late on Monday.

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