Live news: Asian stocks rise as soft US inflation data eases rate rise fears

Real estate groups led a Wall Street rally on Tuesday, following a softer than expected inflation report earlier in the day.

The S&P 500 closed 1.9 per cent higher, with the interest rate sensitive real estate sector leading the way with a 5.4 per cent advance. The SDPR S&P Homebuilders ETF gained 5.9 per cent, its best one-day rise in a year. Utilities advanced 4 per cent.

Meanwhile, the tech-heavy Nasdaq Composite gained 2.4 per cent, nothching its biggest one-day gain since April.

Treasury yields plummeted, with the yield on the rate-sensitive two-year Treasury note down 0.21 percentage points at 4.83 per cent. Bond yields rise as prices fall.