Asia's shares pared losses on Tuesday as China's economy recorded a stronger-than-expected recovery from punishing pandemic lockdowns last year that led to a major slowdown.

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MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was down 0.2 per cent, a smaller decline than the 0.4 per cent fall earlier in the session.

China's economy grew 4.5 per cent year on year for the first quarter which eclipsed the expectations of most economists.

The currencies of Australia and New Zealand, whose exports are reliant on Chinese demand, both popped higher after the GDP data.

Hong Kong's Hang Seng Index (.HSI) was down 0.4 per cent in early trade on Tuesday while China's bluechip CSI300 Index (.CSI) gained 0.3 per cent.

Separate data on March activity also released on Tuesday showed retail sales growth beat expectations and hit a near two-year high, while factory output growth also sped up.

China's government has set a 5 per cent target for economic growth for this year after missing the 2022 goal.

In Asian trade, the yield on benchmark 10-year Treasury notes rose to 3.5889% compared with its US close of 3.591 per cent on Monday.

The two-year yield , which rises with traders' expectations of higher Fed fund rates, touched 4.1773 per cent compared with a U.S. close of 4.188 per cent.

Australian shares (.AXJO) recouped some earlier losses but were still down 0.27 per cent, while Japan's Nikkei stock index (.N225) rose 0.56 per cent.

Australia's central bank considered hiking rates for an 11th time in April before deciding to pause but was ready to tighten further if inflation and demand failed to cool, minutes of the Reserve Bank of Australia's April meeting showed.

On Wall Street, the Dow Jones Industrial Average (.DJI) rose 0.3 per cent, the S&P 500 (.SPX) gained 0.33 per cent and the Nasdaq Composite (.IXIC) gained 0.28 per cent.

Two key business surveys for the US published on Monday, including the Empire State Survey, showed business conditions and sentiment remained robust despite the banking sector crisis and tightening monetary policy conditions.

European stocks ended just barely lower to snap a five-session streak of gains, with the pan-European STOXX 600 index (.STOXX) down 0.01 per cent.