A man is reflected on an electronic board showing exchange rates of the Japanese yen against the dollar, the euro, and Australian dollar and indices of Dow Jones, the NASDAQ and Hang Seng Index, outside a brokerage in Tokyo. Asia stocks nudged three-year highs yesterday on rising optimism over global growth prospects and a record-run on Wall Street, helping lift Treasury yields and the dollar.

AFP/Tokyo

Asian markets were mostly higher yesterday following fresh records on Wall Street, while Shanghai and Hong Kong rose after data showed Chinese inflation surged in May.

Tokyo fell 0.85%, or 129.20 points, to finish at 14,994.80 owing to a weaker yen, but Seoul surged 1.09%, or 21.76 points, to 2,011.80 and Sydney edged up 0.1%, or 5.67 points, to close at 5469.7.

Shanghai rallied 1.08%, or 22.03 points, to 2,052.53 and Hong Kong rose 0.86%, or 198.27 points, to 23,315.74.

Global markets have been on an uptrend in recent weeks as dealers cheer a string of impressive data, including a healthy US jobs report, stronger Japanese economic growth and a marked improvement in Chinese manufacturing and trade.

Hong Kong and Shanghai jumped as dealers welcomed figures showing Chinese consumer prices rose by 2.5% in May, the highest since January, alleviating residual fears that the world’s second-biggest economy could slip into deflation.

However, inflation is still well below the government’s target of 3.5% for 2014, and the latest reading will not be enough to quell calls for Beijing to introduce easing measures to boost the economy.

Adding to buying sentiment was the announcement on Monday by the People’s Bank of China of a cut in the amount of cash that some smaller lenders must keep with the central bank – the reserve requirement ratio – as part of a limited stimulus to boost spending.

However, the PBoC signalled no significant policy loosening is in the pipeline, despite some calls for more forceful relaxation.

BOC International analyst Zhang Yuheng told Dow Jones Newswires: “The economy would have to deteriorate further in order to warrant a cut impacting all banks.”

In foreign exchange trade, the dollar dipped to 102.25 yen in Tokyo yesterday from 102.53 yen late Monday in New York.

The euro eased to $1.3585 from $1.3592, while it was also at 138.93 yen against 139.35 yen.

Oil prices went up in Asia as investors cheered the recent robust economic data from around the world, with the breakdown of initial Ukraine-Russia talks to avert a gas cut-off also boosting prices.

In other markets, Bangkok added 0.82% or 11.89 points, to close at 1,469.19, Singapore fell 0.34%, or 11.38 points, to close at 3,293.82, Jakarta ended up 1.25%, or 61.01 points, at 4,946.09, Kuala Lumpur gained 12.92 points, or 0.69%, to 1,876.61, Taipei rose 0.65%, or 59.63 points, to 9,222.37, Wellington slipped 0.15%, or 7.95 points, to 5,179.40 and Manila closed 0.36% lower, giving up 24.75 points to 6,777.98.