 "Asia shares edge higher, oil pinned near lows")
Asian shares nudged higher on Tuesday, tracking rallies in the United States and Europe as investors seemed to put aside geopolitical concerns, at least for the moment.
MSCI's broadest index of Asia-Pacific shares outside Japan added 0.4% after jumping 1.5% on Monday. Japan's Topix rose 0.4%, while the Nikkei firmed 0.2%.
Australia's main index was one of the major gainers, jumping 1.3% in the wake of strong data on business activity and home prices.
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Singapore's Straits Times Index ticked higher after the city-state reported annualised economic growth of 0.1% in the second quarter when analysts had expected a slight contraction. Strength in the financial sector helped offset sluggish manufacturing activity.
There was also promising news on global trade with the Philippines enjoying its fastest export growth in six months in June.
European markets were expected to open a shade softer on Tuesday with financial spreadbetters tipping falls of between 0.1% and 0.2% for the FTSE 100, DAX and CAC 40.
The better mood came even though NATO chief Anders Fogh Rasmussen warned of a "high probability" that Russia, using the guise of a humanitarian mission, could intervene militarily in Ukraine.
A Russian convoy of 280 trucks carrying humanitarian aid for Ukraine set off on Tuesday.
Investors also monitored Iraq, where the United States recently began air strikes targeting Islamic State fighters marching on the country's Kurdish capital.
None of this seemed to faze Wall Street, where the Dow rose 0.10% on Monday, while the S&P 500 gained 0.28% and the Nasdaq 0.70%.
Shares of Kinder Morgan Inc, the biggest US pipeline company, jumped 9% on news it would put all its publicly traded units under one roof in a $70 billion deal.
EURO ON DEFENSIVE
Yet there was enough of a safe-haven bid to keep Treasuries underpinned with yields on US 10-year paper at 2.433%, not far from last week's 14-month lows.
Major currencies were fenced in narrow ranges, with the US dollar index a shade firmer at 81.537 after drifting in a 82 tick-range on Monday, a far cry from Friday's 336 tick-range.
The dollar bought 102.27 yen, off Friday's low of 101.51, while the euro fetched 136.80 yen, still well off a trough of 135.73 plumbed on Friday.
Geopolitical concerns and sanctions against Russia will probably be reflected in a closely watched survey on German morale due later in the day, analysts at BNP Paribas said.
"We expect the headline expectations measure to fall to its lowest levels since the immediate aftermath of the EUR crisis in early 2013," they wrote in a note to clients.
Such an outcome might keep the euro under pressure. The common currency last traded at $1.3373, still struggling after hitting a nine-month low of $1.3333 a few days ago.
In commodities, oil prices remained in a rut amid plentiful supply with Brent not far from its recent trough of $104.07.
Brent crude futures eased 37 cents to $104.31 a barrel, while US crude lost 34 cents to $97.74 per barrel.
Spot gold was little changed at $1,307.90 an ounce.