(Repeats to additional subscribers with no changes to text)
By Kevin Plumberg
HONG KONG, May 27 (Reuters) - Asian stocks rebounded on Tuesday from the previous day's dip, as bargain hunters scoured the market after five days of losses, though rising inflation and high oil prices kept investors cautious.
The U.S. dollar slipped back toward one-month lows against major currencies such as the euro, putting upward pressure on the cost of crude, which has already risen about 20 percent in May to record highs above $130 a barrel.
Rising commodity prices have fed inflation around the world, hitting consumers' pockets and causing investors to question asset valuations, particularly in the bond market where the yield on the benchmark 10-year Japanese government bond rose to a fresh nine-month high on Tuesday.
Companies such as robot maker Fanuc Ltd <6954.T> and clothing firm Fast Retailing Co Ltd <9983.T> led Japan's Nikkei share average <
> 1.5 percent higher, a day after they led the index down to its biggest one-day drop in six weeks.The MSCI <.MIAPJ0000PUS> index of Asian stocks outside of Japan recovered by 0.7 percent as of 0625 GMT.
Hong Kong's Hang Seng index rose 0.6 percent. Shares of China's third-biggest oil company CNOOC Ltd <0883.HK> were the biggest boost to the index rising 2.4 percent.
South Korea's KOSPI <
> was up 1.4 percent after six straight days of declines, with technology giant Samsung Electronics <005930.KS> paving the way higher."Stocks rose on a rebound after investors sold them off too sharply yesterday, though the market lacks direction as overseas markets were closed," said Masaru Hamasaki, senior strategist at Toyota Asset Management.
The rally in Asian equities sucked money from government bonds.
Ahead of a 20-year bond auction later on Tuesday that would add more supply to the market, the 10-year Japanese government bond yield <JP10YTN=JBTC> rose 2 basis points to 1.760 percent, the highest since early August.
The 10-year yield, which moves inversely to the price, has shot up nearly 20 basis points in May as many large banks cut positions they built up during the worst spells of the credit crisis and as oil prices continued to fuel inflation fears.
U.S. Treasury debt, considered by many to be the world's safest investment, has also been under pressure lately but has lagged the selloff in Japan.
The benchmark 10-year U.S. Treasury yield <US10YT=RR> inched up to 3.86 percent.
"Market sentiment remains weak, with investors jittery about rising inflation," said Koji Ochiai, senior market analyst at Mizuho Securities.
The euro edged up 0.2 percent to $1.5810 <EUR=> against the dollar, after climbing as high as 1.5819, the highest since late April. The U.S. currency steadied against the yen at 103.45 <JPY=>.
In emerging markets, dealers said that central banks in Indonesia, the Philippines, South Korea and Taiwan were suspected of selling U.S. dollars to protect their currencies from market volatility and the economic pain inflicted by high energy prices.
U.S. light crude <CLc1> rose 95 cents to $133.15 a barrel, around $2 below an all-time high of $135.09 hit last Thursday, and spot gold <XAU=> was steady at around $927 an ounce.