By Scott Murdoch

HONG KONG (Reuters – Asian shares edged up on Tuesday despite investor worries that the global recovery might be weaker than anticipated, despite high inflationary pressures.

MSCI’s largest index of Asia-Pacific shares, which is not in Japan, gained 0.84% Tuesday. However it is still below 6.7% for the month. The previous session ended with slight losses for U.S. stocks.

In Tokyo, the was flat in early trade, while in Australia the S&P/ASX200 index gained 0.34%.

Hong Kong had 1.2% more, while mainland China’s CSI300 Index grew 0.07%.

In Asian trade, the, which measures the greenback’s value against a basket currency of major trading partners was at 104.1

Fears of economic growth in two world’s largest economies are back after weak retail sales figures and lower factory production numbers in China. Also, disappointing U.S. manufacturing data have contributed to the decline in global GDP.

The global inflationary effects of China’s lockdowns to stop the coronavirus are being considered by investors. They have also stopped factory production across China.

China’s clampdown on inflation could have important consequences for the rest the world. After all, inflation – and the central bank response – has been a stiff headwind for global bond and equity markets this year,” Capital Economics wrote in a note to clients.

Following a Monday session in which the U.S. was generally weaker, Asian markets saw Tuesday’s gains.

This declined by 0.4% while greater losses were sustained on the, which fell 1.2 percent to 11,664.

Only 0.08% was up in the positives.

In a research note, ANZ strategists stated that “Risk markets were weighed-down by concerns about deteriorating global economic prospects.”

“Hugely disappointing Chinese data April and the plunge U.S. The Empire State manufacturing index raised concerns that the surge in supply chain disruption may have caused a sudden dropoff in economic activity. Data profiling suggests that the main factors are supply-related issues in China, such as the zero-COVID China policy.

New York Fed’s Empire State manufacturing Index on Monday revealed an unexpected fall in May. Shipments fell at the fastest rate ever since the outbreak.

Early Asian trade saw the benchmark yield rise to 2.8931%, compared to its close in U.S. on Monday of 2.879%.

Two-year yields rise with investors’ expectation of higher Fed funds rates. They reached 2.578%, compared to 2.568% at the close in America.

Markets are currently pricing the Fed funds rates to rise 53 basis points at June’s next meeting and 200 by the year-end,” stated Imre Speizer (Westpac’s Head of New Zealand Strategy).

To 129.24, the dollar gained 0.06% against yen. This year, it is close to its peak of 131.34.

After losing 0.99% over a month, the euro single currency gained 0.1% at $1.0437.

The barrel price dropped by 0.18%, to $113.99 per barrel. The barrel cost $114.40 more.

The price of gold was slightly more. Gold was sold at $1,826.7072 an ounce.