Asian shares edged up to near three-month highs on Wednesday and global equities held steady near a record as data showing higher U.S. manufacturing activity in May cheered investors looking for signs of a continued rebound in the world’s largest economy.

U.S. manufacturing activity rose in May, the Institute for Supply Management (ISM) said on Tuesday, as pent-up demand boosted orders in a reopening economy, even as unfinished work piled up because of shortages of raw materials and labour.

Investors will be watching U.S. jobs data due Friday for clues to the Fed’s plans for policy in the coming weeks and months.

Carlos Casanova, senior Asia economist at Union Bancaire Privee in Hong Kong, said reopening expectations had overtaken concerns about inflation.

“Yes, inflation will overshoot in the short term but the Fed is cognizant of that risk and they are looking at a dual target of full employment and inflation. So that has made investors less concerned potentially about the pace of Fed tapering this year, focusing more on the pace of reopening this year (and ) leaving that concern about tapering for next year or beyond,” he said.

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