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Asian shares gain as global relief offsets China risks

Hong Kong - Asian shares climbed for a fourth straight day, keeping a global equities rally intact, as investors shrugged off concerns over North Korea and China’s financial risks.

The MSCI Asia Pacific Index rose 0.7% to 148.83 as of 11:03, with technology, financial and industrial firms leading gains. Japan’s Topix and Hong Kong’s Hang Seng increased at least 1.1% after US equities advanced the most in eight weeks.

Asian markets extended a global relief rally following the French election, while China’s domestic shares stabilised after a selloff amid tightened rules to cut leverage in the country’s financial system. The Shanghai Composite Index gained 0.2% after falling the most in four months yesterday.

Investors played down North Korea’s show of military prowess on Tuesday amid a simmering crisis over the nation’s nuclear program.

"The rosy sentiment in the market could, however, be a short-term phenomenon," Jingyi Pan, a Singapore-based market strategist at IG Asia, said in a note today, adding that concerns over China’s financial deleveraging "could remain despite an improving outlook on growth."

NEC jumped 3.5% in Tokyo, its biggest gain in five months, after reporting a preliminary 2016 profit that beat estimates. Yamato rose 5.6% as the Nikkei newspaper said the company would raise delivery rates for retail consumers.

Bank of East Asia advanced 3.1% in Hong Kong, while Industrial & Commercial Bank of China added 2.2%.

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