Asian stocks rebounded on Tuesday, a day after suffering their biggest percentage fall in 10 weeks, as Citigroup's best results since 2007 raised investor optimism about corporate earnings and risk aversion receded. A flurry of good results from Wall Street and easing fears about the potential fallout from fraud charges against Goldman Sachs (GS.N) helped whet appetite for risk, which also pulled down the dollar and the yen. The Australian dollar surged after minutes of a central bank meeting hinted that more interest rate rises were in the pipeline, while tame inflation data pressured the New Zealand dollar as it made a case for a delay in monetary tightening. The MSCI index of Asia-Pacific stocks outside Japan .MIAPJ0000PUS was up 0.8 percent, reversing some of Monday's 2.3 percent fall that followed news of the charges filed by the US Securities and Exchange Commission against Wall Street titan Goldman Sachs. Regional energy .MIAPJEN00PUS, financial and material stocks .MIAPJMT00PUS were among the big gainers after risk aversion ebbed and investors focused on corporate earnings. "We think earnings have been good, valuations are in the middle of the historical range of the last 15 years," said Khiem Do, head of the Asia multi-asset group at Baring Asset Management which oversees $50 billion. "The Goldman concerns had an impact on US financials but I don't know what that has to do with Asian financials," he said while adding the previous day's fall was sentiment-driven.
