TOKYO : Asian shares rallied on Wednesday as fears of a Russian invasion of the Ukraine this week dissipated after Moscow indicated it was returning some troops to base from exercises, delivering investors a measure of relief.
"If we continue to see signs that diplomacy is working and a de-escalation of tensions, I think we'll see a kind of reversal trade," said Kyle Rodda, a market analyst at IG in Melbourne. Elsewhere in the region, Hong Kong's Hang Seng Index jumped 1.1per cent early in the session, and China's CSI300 Index was up 0.4per cent.
China's factory-gate and consumer price inflation both came in lower than expected in January, data on Wednesday showed.
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