TOKYO (Reuters) - Asian share regained some ground on Tuesday after U.S. President Donald Trump faced growing pressure from political allies to pull back from proposed steel and aluminum tariffs, easing investor worries about an imminent trade war. FILE PHOTO: A man looks at an electronic stock quotation board outside a brokerage in Tokyo, Japan February 9, 2018. REUTERS/Toru HanaiSentiment was also supported by receding risk aversion in Europe with the euro gaining support from the creation of a coalition government in Germany and the impact of Italy’s inconclusive election results limited to a mild sell-off in domestic bonds and stocks. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1.3 percent while Japan’s Nikkei jumped 2.3 percent, a day after it hit a five-month low. Korean shares have erased all the losses they had taken after Trump’s announcement even though the country is seen as being among the worst affected in region by the tariffs due to its big steel exports to the United States. MSCI’s broadest gauge of the world’s stock markets rose 0.3 percent after having snapped a four-day losing streak on Monday with a gain of 0.7 percent. Wall Street shares have now recouped all the losses incurred after Trump unveiled a plan to impose tariffs on steel and aluminum late on Thursday. Leading Republicans, including House of Representatives Speaker Paul Ryan and Representative Kevin Brady, turned up the pressure on Trump to rethink the plan on Monday. Some investors also saw the tariffs threats as a U.S. negotiating tactic to get a better deal on NAFTA. Still, uncertainty remains with confusion about the timing and extent of the planned tariffs inside the White House. Trump said on Monday he would not back down, without elaborating. Trump was expected to finalize the planned tariffs later in the week, although some observers familiar with the process said it could occur next week. The specter of a trade war was not the only source of concern for the stock market. As the global economy steams ahead, investors have become increasingly concerned that U.S. inflation, which has been subdued since the 2008 financial crisis, could finally pick up. While moderate inflation generally supports equity investors, rapid inflation, or fear of it, could prompt the Federal Reserve to hike rates faster, undermining the attraction of equities. “Given the importance of bond yields to equity valuation, equity investors are affected by potential changes in bond yields just as much as fixed-income investors,” said Colin Moore, Global Chief Investment Officer at Boston-based Columbia Threadneedle Investments. “In the current environment, although inflation appears to be increasing, it’s still not likely to cause 10-year yields to rise to levels that would be problematic for equities. I estimate that problematic level to be a 4 percent yield.” U.S. bond yields rose as Wall Street shares rallied. The 10-year U.S. Treasuries yield rose back to 2.882 percent from last week’s low of 2.793 percent. A break of last month’s peak of 2.957 percent could trigger fresh

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