SINGAPORE, May 14 (Reuters) - Asian shares hovered

around 15-month highs on Tuesday and the dollar was firm ahead

of highly anticipated U.S. inflation data, while Japanese bonds

were squeezed as the central bank pulled back a little on its

bond buying programme.

MSCI's broadest index of Asia-Pacific shares outside Japan

climbed slightly and hit its highest since early

2023 in morning trade, as a strong rally in Hong Kong shares

extended into a fourth consecutive week.

Japan's Nikkei was flat. Benchmark 10-year Japanese

government bond yields rose one basis point to

0.95%, the highest yield since November, and five-year Japanese

yields hit 0.555%, the highest since 2011.

World stocks and the S&P 500 were steady overnight,

poised just below record peaks. A survey released on Monday by

the New York Fed showed Americans see inflation a year from now

at 3.3%, higher than they did a month earlier, and later on

Tuesday U.S. producer price figures will be closely watched.

Alibaba ( BABA ) will most likely report results

later on Tuesday.

The main focus this week is on Wednesday's actual U.S. CPI

figures, to see whether some upside surprises in the first

quarter were a blip or a worrying trend. Expectations are for

core CPI to slow from an annual 3.8% in March to 3.6% for April.

"This would be good, but not enough to confirm Fed easing

plans in (the third quarter)," Bob Savage, head of markets

strategy and insights at BNY Mellon, said in a note to clients.

In the currency market, nerves and the inflation expectation

survey were enough to keep the dollar from falling. Dollar/yen

hit its highest since the start of the month, when traders

reckoned Japanese authorities were intervening to buy yen.

The yen traded as soft as 156.4 to the dollar. The euro

was steady at $1.0786 and the Australian and New

Zealand dollars kept to recent ranges, the Aussie at

$0.6606 and kiwi at $0.6015.

HANG SENG SURGES

In China, Hong Kong's Hang Seng index is up 30% from

January's lows and has surged nearly 20% in a month.

News and data in recent days included a third straight

monthly rise in consumer prices, better than expected imports

data, record low credit growth and marketing of a trillion yuan

in long-data special treasury bonds.

Investors see positive demand signals and signs that as

monetary policy is reaching its limits, and with borrowers shy,

authorities are planning to spend to support growth.

"Walking through the recent policy announcements, including

the expansion of stock connect and encouraging leading

enterprises to list in Hong Kong, it is hard not to come to the

conclusion that top management in China intends to reinstate

Hong Kong's role as an IPO hub," said OCBC analysts.

In New Zealand, inflation expectations have dropped, data

published on Monday showed, and construction supplier Fletcher

Building ( FRCEF ) cut its outlook, citing a housing slowdown.

Fletcher's Australia-listed shares hit a two-decade

low on Tuesday. Australia's government is expected to boast

another surplus in its annual budget due on Tuesday.

Shares in bellwether Australian automotive equipment seller

GUD leapt 9% after it forecast meeting expectations.

In Japan, the central bank announced its first cut to bond

buying operations since December on Monday - a surprise hawkish

signal to investors that drove selling in the market.

Two-year Japanese yields were untraded early

on Tuesday but hit their highest since 2009. U.S. Treasuries

were steady in Asia trade to leave 10-year yields at

4.49% and two-year yields at 4.86%.

The so-called meme stocks, which swung wildly after finding

popularity in retail trading blogs and social media posts, leapt

to life overnight after user "Roaring Kitty", credited with

sparking the 2021 frenzy, returned to post on X.com.

Videogame store operator GameStop ( GME ) rose 74%. Oil and

gold were broadly steady with Brent crude futures at

$83.40 a barrel and spot gold at $2,339 an ounce.

(Editing by Gerry Doyle)