Easing inflation concerns helped push equities higher in Asia on Tuesday, tracking a healthy rally on Wall Street, with traders taking heart from the global economic recovery outlook.

Bitcoin also held gains after another wild day, thanks to a supportive tweet from tycoon Elon Musk that offset fresh Chinese warnings of a crackdown on cryptocurrencies.

Tech firms led the way higher in New York as investors took heart from a number of Federal Reserve officials who insisted that an expected spike in prices over the next few months -- caused by issues including supply bottlenecks and just-freed consumers splurging cash -- would be temporary.

The gains helped chip away at recent losses in the sector, which has taken the brunt of selling owing to concerns that a surge in inflation will force central banks to tighten monetary policy and hike interest rates.

Tech giants are more susceptible to higher rates owing to the potential effect on their future earnings and cash flow.

"Markets appear to be coming around to the Fed narrative that a burst in inflation is only likely to be temporary and therefore should not be a concern," said Rodrigo Catril, of National Australia Bank.

"A temporary spike in prices should not instigate a removal of stimulatory policies from central banks."

After a mixed Monday, Asian markets were on a roll.

Hong Kong jumped 1.8 percent, Shanghai climbed more than two percent, while Sydney put on one percent with Jakarta and Taipei up even more.

There were also gains in Tokyo, Singapore, Seoul, Manila, Mumbai and Bangkok, though Wellington slipped.

London was flat in early trade, while Paris and Frankfurt edged up.

- Musk lifts bitcoin -

"Although prices have been rising worldwide, there have been enough speed bumps in the data along the way, notably in the US recently, to leave financial markets with nagging doubts," said OANDA's Jeffrey Halley.

"The Federal Reserve is determined to keep it that way, likely with a taper-tantrum in mind," he said, adding that an "inflationary knockout blow has yet to be delivered".

Oil markets edged down slightly following the previous two days' surge after Iran indicated there remained differences with the US and other world powers on the 2015 nuclear agreement, which has been reopened after Donald Trump pulled out when he was president.

Brent is up more than six percent and WTI almost nine percent since Friday, having been under pressure last week as traders considered the prospect of an agreement being reached and Tehran being allowed to sell crude on the global market again.

Bitcoin was holding around $39,000 -- having almost fallen through $30,000 recently for the first time since January -- after Musk tweeted support for a group attempting to make the mining of the currency less environmentally damaging.

"Spoke with North American Bitcoin miners. They committed to publish current & planned renewable usage & to ask miners WW to do so. Potentially promising," he wrote.

Bitcoin jumped close to $40,000 Tuesday before easing slightly.

The cryptocurrency had early Monday suffered steep losses after China reiterated its call to curtail mining and trading. That came days after Beijing said the units would not be allowed in transactions and warned investors against speculative trading in them.

- Key figures around 0810 GMT -

Tokyo - Nikkei 225: UP 0.7 percent at 28,553.98 (close)

Hong Kong - Hang Seng Index: UP 1.8 percent at 28,910.86 (close)

Shanghai - Composite: UP 2.4 percent at 3,581.34 (close)

London - FTSE 100: FLAT at 7,050.02

Euro/dollar: UP at $1.2256 from $1.2214 at 2100 GMT on Friday

Pound/dollar: UP at $1.4194 from $1.4155

Euro/pound: UP at 86.34 pence from 86.28 pence

Dollar/yen: DOWN at 108.65 yen from 108.76 yen

West Texas Intermediate: DOWN 0.3 percent at $65.84 per barrel

Brent North Sea crude: DOWN 0.3 percent at $68.26 per barrel

New York - Dow: UP 0.5 percent at 34,393.98 (close)

dan/qan

NATIONAL AUSTRALIA BANK

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