SYDNEY : Asian shares crept higher on Thursday after reassuring comments from the Federal Reserve helped Wall Street rally, though the war in Ukraine sent oil and resource prices spiralling ever higher in a grim omen for global inflation.
MSCI's broadest index of Asia-Pacific shares outside Japan nudged up 0.4per cent and away from its recent 15-month low. Japan's Nikkei added 1.0per cent, while the rush to commodities lifted resource-rich Australia 0.9per cent. "We believe investors should underweight the Euro area in both the currency and the equity space given its vulnerability to any further escalation," they wrote in a note.
European bonds also surrendered some of their recent hefty gains after data showed euro zone inflation hit a record high of 5.8per cent in January, making it harder for the ECB to keep policy super loose. The euro remained on the defensive at $1.1112, having carved out a 22-month trough overnight at $1.1056. The dollar edged up 115.53 yen as Japan's trade position is set to worsen given it is a major importer of energy and resources.