Asian stocks make cautious gains after patchy Wall St. rally

NEW YORK: Asian stocks inched higher on Wednesday, as upbeat Wall Street earnings and optimism about a global recovery supported sentiment, although concerns about the sustainability of a recent risk rally are likely to cap gains.

The Australian S&P/ASX 200 Index was last up 0.5per cent and e-mini futures for the S&P 500 rose 0.14per cent. Japan's Nikkei 225 slipped 0.31per cent.

Bitcoin, which gained 19.5per cent on Monday, was down 0.1per cent at US$46,354 as Asian trading got underway.

The cryptocurrency was headed toward US$50,000 on Tuesday, but paused at US$48,216.

The early action came as shares of Lyft Inc rose as much as 11per cent while Twitter Inc climbed 2per cent in aftermarket trading on their latest quarterly results.

The earnings follow a slowdown in the global market rally on Tuesday as investors reconsidered how much government stimulus spending, easy money from central banks and vaccinations will boost stocks, oil and inflation.

"Substantial inflation worries are potentially overblown," Stephen Innes, chief global markets strategist at financial services firm Axi, wrote in a note to clients.

On Wall Street, major stock indexes closed little changed, though the tech-heavy Nasdaq Composite eked out a record high on a gain of 0.14per cent. The S&P 500 lost 0.11per cent and the Dow Jones Industrial Average lost 0.03per cent.

The S&P had climbed the previous six sessions and is up 5.3per cent for the month. All three indexes closed at records on Monday.

European shares also slipped, with the STOXX 600 index finishing 0.1per cent in the red. The index has gained nearly 4per cent this month.

The dollar index fell 0.57per cent on Tuesday, led by losses against the yen and euro in choppy trade and hitting two-week lows.

The yield on the benchmark U.S. 10-year Treasury notes was last at 1.16per cent after rising on Tuesday as high as 1.72per cent but falling back to the same level as on Monday.

Brent oil rose on Tuesday to US$61.06 in the seventh straight session of gains, touching 13-month highs. Investors are betting that fuel demand will rise while OPEC and allied producers keep a lid on supply.

"With Brent over US$60, it's been great psychologically," said John Kilduff, partner at Again Capital LLC in New York.

"Everyone is feeling bullish about stronger demand and global inventories in further decline."

Spot gold added 0.1per cent to US$1,838.09 an ounce after rising to a one-week high on Tuesday.

"The reflation trade is really starting to settle in," and gold is benefiting from the dollar weakening again, and stimulus being the big focus, said Edward Moya, senior market analyst at OANDA.

(Reporting by David Henry in New York; Editing by Sam Holmes)