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Asian markets rose on Tuesday following another positive lead from Wall Street, while slightly higher-than-expected Chinese inflation provided some upbeat news about the world's number two economy.
Shares were also supported by bargain hunting after the region suffered a sell-off Monday on concerns about the US Federal Reserve's stimulus programme.
Tokyo rose 2.58 percent, or 363.56 points, to 14,472.90, while Sydney climbed 1.50 percent, or 72.2 points, to close at 4,881.7 and Seoul was up 0.37 percent
In the afternoon Hong Kong climbed 0.39 percent and Shanghai was up 0.24 percent.
A generally upbeat mood permeated trade, with Wall Street's three main indices ending higher for a second straight session following another strong round of jobs data, while worries about political instability in Portugal also subsided.
The Dow rose 0.59 percent, the S&P 500 added 0.53 percent and the Nasdaq put on 0.16 percent.
US investors were also looking ahead to the earnings season, hoping for some strong guidance for the second half of the year.
Asia suffered a sell-off Monday after the US Labor Department said a lot more jobs were created in June than expected, stoking concerns the Fed would soon start reel in its monetary easing scheme put in place to boost the economy.
However, Michael Hewson, an analyst at CMC Markets UK, said it "appears that markets are coming around to the idea that the idea of tapering may not be such a bad thing".
The upbeat outlook for the US economy has sent the dollar higher against the yen. The greenback stood at 101.21 yen in afternoon trade, compared with 100.99 yen late Monday in New York.
The euro bought $1.2881 and 130.38 yen, from $1.2868 and 129.96 yen.
In China, the National Bureau of Statistics said inflation hit 2.7 percent in June, up from 2.1 percent in the previous month, and higher than the 2.5 percent forecast.
While broadly within expectations, the news will be welcomed following a slew of data indicating growth in the Asian economic giant is slowing down.
"Caution has been growing that China is slowing down quickly," a Japanese bank dealer told Dow Jones Newswires.
But he added: "The data suggesting solid retail sales demand gave some relief."
In Portugal fears of a political crisis ebbed after the coalition government agreed a deal to prevent it falling apart. Sirens were sounded last week when the finance and foreign ministers resigned over Lisbon's austerity drive put in place for a crucial bailout.
Oil prices eased on profit taking, but continue to be supported by the ongoing violence in Egypt, analysts said.
New York's main contract, West Texas Intermediate (WTI) for delivery in August, fell six cents to $103.08 a barrel in afternoon trade and Brent North Sea crude for August was down 20 cents at $107.23.
Last week saw WTI surge 6.5 percent while Brent put on 5.0 percent.
Gold was at $1,256.40 per ounce at 0640 GMT, compared with $1,231.80 late Monday.
In other markets
-- Wellington rose 0.68 percent, or 30.39 points, to 4,523.70.
Trade Me was up 2.35 percent at NZ$4.80 and Fletcher Building gained 0.95 percent to NZ$8.51 but Contact Energy was off 0.19 percent at NZ$5.39.
-- Taipei added 1.08 percent, or 84.84 points, to 7,971.18.
Taiwan Semiconductor Manufacturing Company rose 0.95 percent to Tw$106.0 while smartphone maker HTC fell 0.26 percent to Tw$188.5.