SINGAPORE - Hong Kong shares rose to three-year highs and led Asian markets higher on Tuesday, as investors turn positive on the outlook for the world's second-biggest economy and cheered recent data and promises to further support consumption.

The Hang Seng was up 2 percent in morning trade and its 23 percent year-to-date gain is easily the largest of any major market.

Short sellers rushed to cover bets against the New Zealand dollar, which is sensitive to China's consumer via food exports, sending it to a three-month high of $0.5827.

The China-sensitive Australian dollar hit a one-month high just shy of $0.64 and China's yuan hovered near its strongest levels of the year so far.

On Monday the OECD forecast US President Donald Trump's higher tariffs will drag down growth in Canada, Mexico and the US while driving up inflation.

On Sunday China announced childcare subsidies and a "special action plan" to boost domestic consumption and on Monday data showed retail sales growth quickened in January-February.

The Hong Kong dollar is parked in the strong half of its trading band against the dollar and Hong Kong interbank rates have been falling lately, pointing to the weight of money pouring into the financial hub.

Chinese mainland shares made more modest gains, while MSCI's broadest index of Asia-Pacific stocks rose 1 percent with markets in Seoul and Sydney also higher.

Japan's Nikkei bounced 1.5 percent, putting it on course for its sharpest rise in three weeks.

Overnight on Wall Street stocks stabilized but the mood remains fragile leading into April, when Trump's threatened reciprocal tariffs are set to take effect.

Softer-than-expected retail sales and factory activity figures kept downward pressure on the US dollar and on US yields, opening further gains for gold.

Gold marked a record high at $3,005 an ounce in the Asia morning. The euro was firm above $1.09 and sterling, which touched a four-month top overnight, traded a whisker short of $1.30.

Ten-year Treasury yields were steady at 4.293 percent.

Ahead in the day a German economic survey is due, though markets' focus is on the US Federal Reserve, which concludes a two-day meeting on Wednesday, and the outcome of a phone call between Trump and Russian President Vladimir Putin.

Trump said he would talk to Putin about ending the Ukraine conflict - a prospect which has pushed down on European gas prices and sent the euro rallying in recent weeks.