By Kane Wu

HONG KONG, (Reuters) – Asian shares rose on Tuesday as positive Wall Street earnings improved the broader economic outlook. However, new worries regarding China’s property market impacted Hong Kong and the mainland markets.

Japan’s benchmark open up 1.4%, while Australia’s opened up 0.2% at 0133GMT. MSCI’s index of Asia Pacific stocks, outside Japan, rose by 0.23 percent.

China’s benchmark CSI300 Index Index was higher than expected, but it fell to negative territory due to property stocks.

The market rallies this year was driven by technology companies like Alphabet, Microsoft, Amazon and Apple Inc (NASDAQ).

“Of the S&P 500 firms that have reported this season, the net surprise on earnings has been 13%. It is therefore easy to see the optimism that percolates through risk appetite despite inflation worries,” stated ANZ Research in a Tuesday report.

The economy is strong. The note stated that ANZ analysts believe the recovery will reexamine itself once the COVID concerns and bottlenecks subside.

The and S&P 500 closed at record highs on Monday. Tesla (NASDAQ:), which jumped 12.66% and breached $1 trillion in market capitalisation, also provided the biggest boost to the S&P 500 and the Nasdaq.

China said that it will introduce a pilot real-estate tax in certain areas, increasing investor concern about mainland real property.

The index of mainland Hong Kong property companies that are listed on the Hong Kong Stock Exchange fell 4%.

Edison Pun Senior Market Analyst at Saxo Markets stated, “The market remains in a strong tendency, especially since it started to digest Fed will begin tapering in November,”.

We need to be careful about whether the property tax will add pressure on China’s property market. He said that it could lead to lower consumption if there is an overall decline in Chinese property prices.

U.S. Treasury yields dropped because market sentiment was affected by uncertainty regarding when the Federal Reserve will raise rates to combat rising inflation.

On Tuesday, the dollar gained 0.1% after recovering from an almost one-month low during the previous session.

On Monday, oil prices rose and reached new multi-year records. The tight global supply coupled with a stronger fuel demand in the United States supported these prices.

Futures dropped by 0.03% to $85.96/barrel, and the U.S. West Texas Intermediate(WTI) crude oil futures plummeted 0.04% at $83.72 a barrel in Tuesday morning trade.

It fell by 0.21%, to $1.803. per ounce.