SINGAPORE (Reuters) - Asia shares rose on Tuesday, tracking Wall Street's positive lead and as some investors hoped incoming U.S. President-elect Donald Trump could adopt a less aggressive tariff stance than promised when he takes office.

The Washington Post reported on Monday that Trump aides were exploring tariff plans that would be applied to every country but only cover certain sectors deemed critical to national or economic security, in what would have represented a marked shift from promises Trump made during the 2024 presidential campaign.

While the news initially sent stocks rallying and the dollar falling, Trump's subsequent denial on his Truth Social platform reversed some of the U.S. currency's declines.

"No one really knows for sure what kind of tariffs or trade policies the Trump administration will implement," said Khoon Goh, head of Asia research at ANZ.

"It's still possible that what the Washington Post reported is true. His officials and aides of course will go through and come up with various options, but ultimately it's up to Trump to decide.

"For now, he is still talking tough on tariffs. But we know from experience from his first term that he is a person that is open to doing deals. I think that's partly why markets at this stage are not reacting too negatively."

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.16% in the early Asian session, while Japan's Nikkei jumped 2%, boosted by a rally in technology stocks.

The dollar, meanwhile, hovered near a one-week low at 108.36, nursing some of its losses from the previous session.

The euro and sterling pared some of their sharp gains made overnight following the Washington Post report, each falling 0.1% to trade at $1.0377 and $1.25085, respectively.

In China, the CSI300 index reversed early losses to last trade 0.12% higher, while the Shanghai Composite Index fell 0.09%.

Hong Kong's Hang Seng Index dropped 0.43%.

China's main stock exchanges asked some large mutual funds to restrict stock selling at the start of the year, three sources familiar with the matter said, as authorities sought to calm markets heading into a tricky period for the world's second-largest economy.

DATA DUMP

Inflation figures from the euro zone later on Tuesday will refine the outlook for more rate cuts from the European Central Bank. Markets are pricing in slightly less than 100 basis points worth of easing in 2025 for now.

The week is a busy one filled with various economic data releases particularly from the United States, which will be headlined by the December nonfarm payrolls report on Friday.

That will be previewed by data on ADP hiring, job openings and weekly jobless claims.

Anything upbeat would support the case for fewer rate cuts from the Federal Reserve, and markets have already scaled back expectations to just 40 basis points for 2025.

Minutes of the Fed's last meeting due on Wednesday will offer colour on their dot plot predictions, while there will be plenty of live comment with several top policymakers speaking.

The prospect of a less aggressive Fed easing cycle this year has in turn kept U.S. Treasury yields supported, with the benchmark 10-year yield last at 4.6219%, after rising to its highest since May in the previous session.

The two-year yield steadied at 4.2704%.

Elsewhere, the dollar notched a fresh six-month high against the Japanese yen at 158.425.

The Canadian dollar last traded a touch weaker at 1.4345 per U.S. dollar, following a rally on Monday after Canadian Prime Minister Justin Trudeau said he would step down in the coming months.

"Should Canada move toward an early election in which a Conservative-led government emerges, the CAD could appreciate," said Thierry Wizman, global FX and rates strategist at Macquarie.

"This is based on the view that certain outcomes will likely improve for Canada under a Conservative-led government, and even in anticipation of a Conservative-led government."

In commodities, oil prices edged lower on Tuesday, with Brent falling 0.37% to $76.02 a barrel, while U.S. crude eased 0.46% to $73.22 per barrel. [O/R]

Spot gold rose 0.18% to $2,640.49 an ounce. [GOL/]