Asian shares rise on easing of Ukraine tensions, cheaper oil

TOKYO (AP) — Asian shares rose Wednesday, buoyed by hopes for a diplomatic solution instead of a Russian invasion of Ukraine.

But analysts warned the tensions were far from completely resolved, and the situation remains volatile.

“In short, provided we get a further pause in geopolitics, we might be able to focus on worrying data instead. But I would tread carefully on the assumption that we will be able to for long,” RaboResearch said in a report.

Japan's benchmark Nikkei 225 jumped 2.2% in afternoon trading to 27,457.55. Australia's S&P/ASX 200 rose 1.1% to 7,284.90. South Korea's Kospi surged 1.9% to 2,727.39. Hong Kong's Hang Seng added 1.2% to 24,635.41, while the Shanghai Composite gained 0.6% to 3,466.14.

“With the positive Wall Street lead, the recovery in risk appetite may continue to play out into the Asia session,” said Yeap Jun Rong, a market strategist at IG in Singapore.

The Chinese government reported consumer prices rose 0.9% over a year earlier in January while prices of goods as they left the factory rose 9.1%.

China has been hit by the same supply disruptions that are pushing prices up in the United States and Europe, but the impact on Chinese consumers has been smaller. January inflation was down from December’s 1.5%. Forecasters expect it to decline further.

Technology companies led a rebound on Wall Street, as investors welcomed signs that tensions might ease over the Russian military buildup on Ukraine's border.

The S&P 500 rose 1.6% to 4,471.07. The gain snapped a three-day losing streak and nearly made up for all of its losses last week. The Dow Jones Industrial Average rose 1.2% to 34,988.84 and the tech-heavy Nasdaq composite climbed 2.5% to 14,139.76.

The rally came as Russia announced that some units participating in military...