Asian shares have advanced across the board as buying sets in after the lull of a U.S. national holiday. Analysts said the optimism may be driven by expectations the U.S. may decide to cut Chinese tariffs, a welcome move that would also help tame inflation. Investors have been encouraged as restrictions related to the coronavirus pandemic are gradually lifted across the region, including in Japan, which had been booming with tourists from abroad ahead of the pandemic. But risks remain because of inflation and slowing economic activity in some countries. A resurgence in COVID-19 infections in Europe, the U.S. and parts of Asia is also looming, bringing the threat of a reversion to pandemic precautions.
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