Asian shares inch higher on Wall Street record, German data

Asian shares rose on Wednesday on another record high for US stocks and unexpectedly strong German industrial orders, as investors await the first batch of April data from China for the latest take on the region's powerhouse economy.

Japanese stocks were likely to be the region's outperformer, eyeing to test a fresh five-year high. The Nikkei stock average opened up 0.1 percent after soaring 3.6 percent to rise above 14,000 for the first time since June 2008 on Tuesday.

"Foreign investors just don't stop buying Japanese shares," said Kenichi Hirano, operating officer at Tachibana Securities.

"The trend appears stable as it's pension funds and large global funds that are buying, with buy-and-hold strategies, not just hedge funds. We can't say this trend has just began, but I believe it will continue for a while."

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.2 percent, with Australian shares trading up 0.2 percent and South Korean shares opening 0.4 percent higher.

On Tuesday, the Standard & Poor's 500 Index touched an intraday record high and the Dow Jones industrial average closed above 15,000 for the first time, while Germany's benchmark DAX equity index ended at a record high.

Investors are seeing better returns from equities than bonds, which have been hit by interest rate cuts by major central banks, with the Reserve Bank of Australia becoming the latest to do so on Tuesday.

China, the world's second-largest economy and top consumer of many commodities, will report trade data this session, followed by inflation on Thursday and money supply and loan growth expected from Friday.

"The Chinese Trade Balance ... typically falls in line with expectations, but last month's surprising deficit didn't fit in to that mold. In addition, Chinese PMI data has been slipping slightly and nations who are dependent upon the Asian giant are becoming concerned and will be paying attention," said Neal Gilbert, market strategist at GFT, in a note to clients.

"I believe (the trade data) may not live up to expectations and the seeds of doubt will begin to surface once again."

Recent data suggested a patchy global economic recovery, although Friday's US jobs report proved much stronger than expected, while Germany, Europe's largest economy, reported a surprise 2.2 percent rise in industrial orders in March against forecast of a 0.5 percent drop.

A successful bond sale in Portugal also supported the upbeat mood as it indicated the country is on track to exit its bailout.

The euro steadied against the dollar at USD 1.3077, but fell 0.2 percent against the yen at 129.17 yen.

The yen was also firmer against the dollar, trading up 0.2 percent at 98.80.

Spot gold remained pressured, down 0.1 percent at USD 1,450.06 an ounce after falling over 1 percent on Tuesday, as outflows from gold-backed exchange-traded funds continued.

News hedge fund billionaire John Paulson suffered a heavy loss in his gold fund also weighed on prices.

US crude futures were down 0.2 percent at USD 95.44 a barrel.