Asian shares gain on upbeat US tech earnings

Upbeat results from tech majors offset concerns about global economy

Asian shares pulled ahead on Wednesday, taking their cue from Wall Street's strong performance as upbeat results from two technology bellwethers offset recent concerns about the outlook for the global economy.

In US trading, shares of Apple Inc and Texas Instruments Inc gained on stronger-than-expected quarterly earnings, lifting the tech-heavy Nasdaq Composite index more than 2%. The S&P 500 added 1.96% to mark its biggest daily percentage gain since October 2013 and its fourth straight rising session.

European shares also posted gains on a Reuters report that the ECB was readying a plan to buy corporate bonds, a step that would help banks free up more of their balance sheets for lending.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.2%, while Japan's Nikkei stock average was up 2% in early trade, rebounding from a sharp drop of a similar magnitude on Tuesday.

Japanese trade data released early Wednesday underpinned sentiment, as it showed Japan's exports rose 6.9% in September from a year earlier, a tentative sign that external demand is starting to pick up.

The upbeat mood in equities markets sapped the safe-haven appeal of US Treasuries, pushing up their yields. The yield on benchmark 10-year US Treasury notes stood at 2.227% in Asian trade, up from Tuesday's US close of 2.208%.

Data showing a stronger-than-expected 2.4% rise in US domestic home resales last month provided evidence that the US economic recovery maintained momentum and also put upward pressure on yields.

Higher US yields helped bolster the greenback, with the dollar index rising to 85.381.

"Given heightened concern about falling inflation expectations, attention turns to the US September CPI report," strategists at Barclays said. "Our thesis of USD outperformance driven by relative US strength and interest rate divergence remains intact, but is at risk of delay pending soft underlying inflation trends."

The dollar was steady on the day against the yen at 107.04 yen, holding its overnight gains, while the euro nursed its losses after dropping on the ECB news, and stood at $1.2713 in early Asian trade.

In commodities markets, Brent crude inched up about 0.1% to $86.29 a barrel after posting solid gains on Tuesday, helped by data showing stronger-than-expected China demand and some technical price recovery after weeks of almost uninterrupted selling.

Spot gold was steady at $1,248.59, not far from a six-week high marked in the previous session.