Asian Shares Mostly Higher Despite Growth Concerns

(RTTNews) - Asian stocks rose broadly on Tuesday even as rising oil prices revived worries about inflation and weak U.S. manufacturing data added to the gloom surround the U.S. economy.

A gauge of U.S. manufacturing activity slumped in March to the lowest level in nearly three years due to tighter credit conditions, spurring bets that a U.S. recession is around the corner.

The U.S. dollar regained some ground and Treasury yields held declines amid renewed anxiety about the economy, while gold slipped after rising 1 percent in the previous session.

Oil prices rose further in Asian trading after scoring big gains on Monday in the wake of the surprise cuts to the OPEC+ group's oil output targets.

Chinese shares closed higher on the back of continued gains in artificial intelligence-related stocks. The Shanghai Composite index rose 0.49 percent to 3,312.56 ahead of the Qingming Festival holiday on Wednesday.

Hong Kong's Hang Seng index slipped 0.66 percent to 20,274.59 as technology stocks dropped amid rising Sino-U.S. tensions.

China has warned of 'further damage' to bilateral relations ahead of Tsai-McCarthy Wednesday meeting.

Japanese shares rose modestly to extend gains for a third day running, led by energy explorers, utilities and shipping firms. Kansai Electric Power, Mitsui OSK Lines and Kawasaki Kisen climbed 2-3 percent.

Clothing retailer Shimamura plunged 5.5 percent after its forecast for annual operating profit came in below analyst estimates.

The Nikkei average edged up 0.35 percent to 28,287.42 while the broader Topix index ended 0.25 percent higher at 2,022.76.

Seoul stocks rose as data showed consumer inflation in the country eased to a one-year low in March, led by weaker oil prices. The Kospi average rose 0.33 percent to 2,480.51, led by tech, auto and refiner stocks. Leading steelmaker POSCO led losses to close 6.4 percent lower at 367,000 won.

Australian stocks ended slightly higher after the Reserve Bank of Australia paused its tightening cycle following 10 straight rate hikes, saying it wants to see the lag effects of prior rate increase low through the economy.

The benchmark S&P/ASX 200 inched up 0.18 percent to 7,236 while the broader All Ordinaries index settled 0.20 percent higher at 7,431.50.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index gained half a percent to close at 11,898.56.

U.S. stocks ended higher overnight as investors weighed weak manufacturing data against climbing oil prices.

Market participants believed that the decrease in oil production as a result of the OPEC+ move will largely be offset by falling demand.

The Dow gained 1 percent and the S&P 500 edged up 0.4 percent while the tech-heavy Nasdaq Composite shed 0.3 percent.