Asian shares gain

TOKYO, Nov 12 (Reuters): Asian share prices advanced on Friday as a shock from a surprisingly strong US inflation reading ebbed, with investors hopeful that the worst price hikes could be soon over.

Japan's Nikkei gained 1.1 per cent, helped by brisk earnings. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.25 per cent but mainland Chinese shares were softer, with CSI 300 index slipping 0.3 per cent.

European stocks are expected to edge higher, with Euro Stoxx futures up 0.15 per cent and Britain's FTSE futures 0.1 per cent higher.

US stock futures ticked up 0.1 per cent in Asia after a mixed session on Thursday when the S&P 500 ended 0.06 per cent higher while tech-heavy Nasdaq rose 0.52 per cent.

The world's stock prices posted their biggest fall in over a month on Wednesday following a surprisingly strong reading on US inflation.

The US consumer price index rose 6.2 per cent year-on-year in October, the strongest advance since November 1990.

"Inflation is obviously a risk to watch. But stock prices will face a major crash only if the Federal Reserve turns out to be completely wrong in its assessment and is forced to raise interest rates rapidly. That's not where we are now," said Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities.

While the inflation data suggested that the current wave of price spikes due to chronic worldwide supply constraints could have more staying power than many had hoped, many investors still think inflationary pressure will eventually ease, rather than strengthen.

"If we get over the year-end holiday shopping season, when demand should be peaking, perhaps inflation could subside," said Hirokazu Kabeya, chief global strategist at Daiwa Securities.

"US holiday sales are expected to rise 8.5 per cent to 10 per cent this year, with some consumers said to be starting to buy earlier than usual because of worries about supply glitches. If that's the case, we could see a pretty strong retail sales number next week, which would be positive for stocks," he added.