Asian shares rose Tuesday after rallies in U.S. stocks and positive U.S. data cheered investors, with hopes for some progress in the euro zone crisis also helping.

The MSCI index of Asia-Pacific shares outside Japan inched up 0.4 percent, with Australian shares rising 0.6 percent and South Korean shares opening 0.9 percent higher. Japan's Nikkei average opened up 0.7 percent, Reuters reported.

U.S. stocks climbed on Monday after earnings from Citigroup Inc (C.N), the third-largest U.S. bank, and retail sales strongly beat expectations. An earnings report from Goldman Sachs (GS.N) is scheduled on Tuesday.

"Citigroup's earnings yesterday reinforced the confidence in the health of big firms, and the markets responded," Ryoo Yong-suk, an analyst at Hyundai Securities, told Reuters.

There was some caution, however, before China publishes third-quarter gross domestic product data on Thursday, while Chinese corporate profits show scant sign of a second-half recovery.

European equities edged higher on Monday on expectations Spain is moving closer to asking for a bailout and news that Greece hopes to agree a new austerity package, seeking to bridge the gap with its lenders at an European Union leaders' meeting on Thursday and Friday, although officials said talks would most likely not be completed at the EU summit.

 

Greek bond yields fell to their lowest since August 2011 on Monday, as investors scaled back bets the country will leave the euro zone.

The euro was up 0.1 percent at $1.2966, confined to recent ranges, as investors wait for the clarity on the timing of bailouts for struggling Spain and Greece.

U.S. crude futures were down 0.2 percent at $91.69 a barrel and Brent was down 0.1 percent at $115.72. 

Traders said momentum is gaining for the dollar to test its upside against the yen. The dollar was up 0.2 percent at 78.75 yen.