Asian stocks inched higher on Wednesday, as upbeat Wall Street earnings and optimism about a global recovery supported sentiment, although concerns about the sustainability of a recent risk rally are likely to cap gains.
The earnings follow a slowdown in the global market rally on Tuesday as investors reconsidered how much government stimulus spending, easy money from central banks and vaccinations will boost stocks, oil and inflation."Substantial inflation worries are potentially overblown," Stephen Innes, chief global markets strategist at financial services firm Axi, wrote in a note to clients.
European shares also slipped, with the STOXX 600 index finishing 0.1per cent in the red. The index has gained nearly 4per cent this month.The dollar index fell 0.57per cent on Tuesday, led by losses against the yen and euro in choppy trade and hitting two-week lows.