Asia stocks ended mostly higher on Tuesday following a pick up in Chinese consumer inflation, but Japanese shares fell on profit-taking.
China's annual consumer inflation rose 2.5 percent in May, faster than a 1.8 percent rise in April. Producer prices fell 1.4 percent on year, but that was still better than April's 2 percent drop.
"There are two important market signals for the Chinese economy out of this report. The first is from the PPI report: industrial overcapacity is a genuine problem. The second signal is from the CPI report: there is negligible slack in the labor market, reflected in rapidly rising costs of labor-intensive services," said Bill Adams, senior international economist at PNC Financial Services.