AFP, Hong Kong

Asian markets rose in limited trade Tuesday following another strong lead from Wall Street fuelled by a rebound in tech firms, while comments from Federal Reserve officials eased concerns that it will embark on an aggressive phase of policy tightening.

US equities rallied for a second day with plenty of support coming from Apple’s blowout earnings report last week, while the current reporting season has proved fruitful despite concerns about inflation and central banks withdrawing financial support.

The Wall Street surge came at the end of a volatile month characterised by speculation over the Fed’s plans to get a grip on runaway prices, with fears that its new hawkish tilt could see it hike borrowing costs as much as seven times this year with a 50 basis point move in March.

Comments from some leading figures at the bank at the weekend added to expectations the policy board would go hard and fast, though some were out on Monday trying to play down such a move.

Atlanta Fed boss Raphael Bostic said he was not in favour of such a big hike next month, having told the Financial Times at the weekend that his colleagues had not ruled it out.

Meanwhile, Kansas City Fed President Esther George said it was in “no one’s interest to try to upset the economy with unexpected adjustments”, and the head of the San Francisco arm, Mary Daly, added that measures “have to be gradual and not disruptive”.

The Nasdaq soared more than three percent, paring losses for January to nine percent, having at one point been down almost 15 per cent during the month, while The S&P 500 and Dow also chalked up healthy gains.

And the positive energy continued in Asia, with Tokyo, Sydney and Wellington all up.

However, business was thin owing to the Chinese New Year break that saw Hong Kong, Shanghai, Singapore, Seoul, Taipei, Manila and Jakarta closed.

There was also hope that the rally could indicate markets are finding a bottom after the recent sell-off. “The back to back consecutive rise in US stocks has got some thinking whether the trough has passed,” said National Australia Bank’s Tapas Strickland.

“Despite the talk of higher rates, earnings so far have been much better than expected. Whether we have passed the trough is uncertain, but certainly for some value is re-emerging.”

And Solita Marcelli, at UBS Global Wealth Management, said in a commentary: “Investors should not lose sight of the fact that the economy remains strong, which should limit downside from current levels.”