Asian shares higher, eyes on China data

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Technology plays were also in positive territory after Microsoft announced it was to buy Internet phone pioneer Skype while the euro held its own despite concerns over Greece's ongoing debt troubles.

In morning trade Tokyo gained 0.72 per cent, Hong Kong rose 0.61 per cent, Sydney rose one per cent and Seoul added 0.80 per cent.

Markets were extending broad gains on Tuesday amid rising confidence in the global economy and following a 0.60 per cent rise on the Dow and a hike of 0.81 per cent on the S&P 500.

The tech-rich Nasdaq jumped 1.01 per cent, boosted by Microsoft's $8.5 billion cash purchase of Skype, its largest-ever acquisition.

Tokyo was lifted by the weakening yen, which slipped to 80.93 yen against the dollar in early trade from 80.37 yen late Tuesday in New York.

It also eased to 116.64 versus the euro from 116.54. The euro fetched $1.4400, compared with $1.4410 in New York.

The euro managed to hold up as the European Union, International Monetary Fund and European Central Bank began an audit of finances and reforms in Greece to determine if it merits a critical new slice of funding from a bailout agreed last year.

The meeting came as a top ECB official warned that a debt default or restructuring for Athens would hit the entire eurozone.

A restructuring would put Greece's banking system "on its knees," Lorenzo Bini Smaghi told the Italian daily La Stampa.

Asian trade was quiet ahead of the release of Chinese data, including inflation, which could determine monetary policy in China, with Beijing likely to announce fresh tightening measures if prices rose faster than hoped in April.

In March inflation hit 5.4 per cent, its highest in more than two years, despite leaders' cooling efforts.

"Chinese (inflation) data will be closely watched since rising inflation may cast a shadow over the economic expansion of emerging economies," said Hiroichi Nishi, general manager at SMBC Nikko Securities.

China has raised interest rates four times since October and issued numerous orders for banks to set aside more of their deposits as reserves, amid concerns that rising prices could cause social unrest.

Gold opened at $1,520.00-$1,521.00 an ounce in Hong Kong up from Monday's finish of $1,506.00-$1,507.00. Gold markets were closed on Tuesday.