By Alun John

HONG KONG (Reuters – Asian shares gained on Tuesday supported by a tech-driven Wall Street rally and a rebound Chinese markets a days after weak data raised concerns among investors about the second-largest country in the world.

As weak U.S. manufacturing data dampened expectations of any future interest rate rises, the dollar fell.

The broadest MSCI index of Asia-Pacific shares, which excludes Japan, rose by 0.76% Tuesday. This is largely because it has risen 5% over its previous 12-month low on Oct. 5. It follows a similar rally of world shares that followed a strong opening in the U.S. earnings season.

The Asian benchmark remains well below its July level, which was when markets were frightened by a number of Chinese regulatory changes. gain 0.56%

“Asian markets have been generally following Wall Street and continuing the rebound – except worries about the Chinese economy’s growth are hurting that market’s performance,” said Edison Pun, Senior Market Analyst at Saxo Markets.

Chinese blue chips recovered early losses to increase 0.62% on Tuesday. They fell 1.1% after China announced slowing gross domestic product growth in the third quarter.

Hong Kong also saw gains of 1.21% in Australia (up 0.2%) and South Korea (0.63%).

U.S. Stock Futures gained 0.08%

The Dow dropped 0.1%, the Nasdaq fell 0.4%, and the Dow lost 0.1% overnight due to poorer factory data.

Shares of Apple (NASDAQ:), Facebook (NASDAQ:) and Microsoft (NASDAQ:) were among the biggest boosts to the S&P 500. ()

On Tuesday, dollar markets remained near their lowest point against other major currencies. The weakness in U.S. factory data over the overnight, as well as market speculations about a quicker normalisation of monetary policies elsewhere, had weighed down the dollar’s performance.

Analysts at Westpac said that “any slippage must prove modest”, with U.S. Federal Reserve officials signaling a strong preference to move ahead with the November stimulus tapering announcement.

It fell 0.13% to 93.83, near its lowest point this month. The currency lost ground against sterling and the euro but held its position in relation to the yen.

U.S. Treasuries were able to take a break in Asia’s early days. As traders were preparing for possible central bank rate rises, overnight five-year yields rose as high as they had been since early 2020.

The drop in factory data on Monday caused oil prices to fall from highs of multi-years. This tempering demand expectation, however, remains a worry for import countries. [O/R]

A barrel lost 0.422% to 83.97 and a barrel lost 0.244% to 82.24.

Although gold gained 0.2%, its spot price rose to $1,767.9 an troy ounce. The metal has remained within its current range.