Asian Equities Rally after U.S. Lead

Asian shares shrugged off early losses on Tuesday, as rallying Chinese shares and Wall Street’s record close offset euro worries over Greece’s fiscal woes.  MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was up 0.2 percent. The CSI300 index .CSI300 surged 3.1 percent and the Shanghai Composite Index .SSEC rose 2.6 percent.

Japan’s Nikkei stock index .N225 added 0.7 percent, rising to a three-week high, while the Topis .TOPX added 0.5 percent.  “When risk appetite recovers investors start to pay more attention to stock valuations,” said Hiroyuki Nakai, chief strategist at Tokai Tokyo Research Center. “About 40 percent of the Topix components are below their book value, so in the mid-term, people may pick up such stocks.”

Both the Dow Jones industrial average .DJI and the S&P 500 .SPX closed at record highs, the third straight day for the latter, after lackluster economic data raised hopes that the U.S. Federal Reserve would hold off raising interest rates.  The National Association of Home Builders said its index of members’ sentiment fell to 54 points in May from 56 in April, short of a forecast increase to 57 among economists polled by Reuters.