Asian shares extend rally as strong US data, tech hopes lift sentiment

Asian shares continued a rally from Wall Street and the dollar held gains on Wednesday on promising economic signs in the United States and speculation of strong tech earnings.

Markets welcomed what appeared to be easing trade frictions between the US and Europe while global bond markets settled down after a scary surge in long-term yields. US consumer confidence surprised on the upside ahead of closely watched jobs figures on Thursday.

Nvidia jumped more than 4 per cent yesterday and will be the last of the Magnificent 7 tech giants to report earnings after markets close in the US. 

"There is renewed confidence that Nvidia can beat the consensus estimates," said Chris Weston, head of research at Pepperstone.

If Nvidia comes through with better-than-expected sales and profit margins "the rally is on," he added.

The chipmaker is expected to report that first-quarter revenue surged 66.2 per cent to $43.28 billion, according to data compiled by LSEG.

In signs of a thaw between the US and Europe, European Union officials have asked companies for details of their US investment plans, according to two sources familiar with the matter.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.3 per cent in morning trading while Japan's Nikkei advanced 0.6 per cent, climbing a fourth straight session.

The dollar index, which tracks the greenback against a basket of currencies, rose 0.1 per cent, adding to Tuesday's 0.6 per cent rally. The greenback advanced 0.1 per cent to $1.132 against the euro. 

Australian shares were up 0.17 per cent, but the nation's currency slid 0.2 per cent after April consumer price data came in above expectations. The kiwi dollar slid 0.3 per cent after the Reserve Bank of New Zealand cut rates as expected.

Japanese bonds slid, trimming a surge yesterday, ahead of a 40-year auction and on speculation the Ministry of Finance will reduce the issuance of long-dated securities.

Oil prices ticked up in early trading as the US barred Chevron CVX.N from exporting crude from Venezuela under a new authorization on its assets there, raising the prospect of tighter supply.

Brent crude futures rose 0.4 per cent to $64.37 a barrel, while US Spot gold rallied 0.1 per cent after dropping more than 1 per cent on Tuesday.