Portugal Colonial - Asian shares up as bank crisis fears ease

European stocks had rallied and two of the three main Wall Street indexes advanced the previous day on news that North Carolina-based First Citizens Bank had agreed to take over most of SVB.

The gains were led by rises in bank shares, following a rout last week over concerns that the turmoil in the sector could hit other major institutions, such as German giant Deutsche Bank.

Ray Attrill, head of FX strategy at National Australia Bank, said Tuesday that the acquisition by First Citizens had "helped set a positive tone" in global markets.

"Together with the absence of new scare stories over the weekend, banking shares have driven a rally across most major equity indices," he wrote in a note.

Hong Kong shares were up 0.5 percent mid-morning, Sydney rallied 1.1 percent and Seoul rose 0.4 percent. Jakarta gained 0.3 percent and Singapore was up 0.3 percent.

Tokyo finished the morning session almost flat, with Shanghai also little moved, while Taipei dropped 0.8 percent.

On Monday, the World Bank warned that an anticipated economic slowdown in China is likely to drag global growth down to its lowest level this century as it proposed measures to prevent a "lost decade" of growth.

"We've grown used to China being the tractor of the global economy, and that will have to change because China's growth rate is going to go down over time," World Bank Chief Economist Indermit Gill said.

After last week's tumult, traders were taking the opportunity to regroup, SPI Asset Management's Stephen Innes said Tuesday.

"US stocks are trading moderately higher, and bonds lower Monday as bank stresses relax a bit further," he said.

"This allows investors more breathing room to position ahead of a busy end-of-the-month data week docket and an even busier April" as first-quarter earnings approach.

"While last week's hurricane could still provide significant headwinds due to the reduced availability of credit to the real economy, there is a growing recognition that this could help the Fed inflation fight by keeping growth below potential despite China reopening amid an improving backdrop in Europe," Innes added.

- Key figures around 0230 GMT -

Tokyo - Nikkei 225: UP 0.1 percent at 27,497.45 (break)

Hong Kong - Hang Seng Index: UP 0.5 percent at 19,670.08

Shanghai - Composite: FLAT at 3,251.42

Euro/dollar: UP at $1.0813 from $1.0803 on Monday

Pound/dollar: UP at $1.2312 from $1.2289

Euro/pound: DOWN at 87.82 pence from 87.88 pence

Dollar/yen: DOWN at 130.74 yen from 131.56 yen

West Texas Intermediate: FLAT at $72.81 per barrel

Brent North Sea crude: DOWN 0.2 percent at $77.92 per barrel

New York - Dow: UP 0.6 percent at 32,432.08 (close)

London - FTSE 100: UP 0.9 percent at 7,471.77 (close)

F.Moura--PC