* China data signal continuing tightening stance * Crude oil weakens on lower demand worries * Australian dollar edges back, but still recovering By Richard Pullin MELBOURNE, May 11 (Reuters) - Asian shares firmed on Wednesday on rising commodity prices which boosted energy and resource stocks, as investors largely shrugged off slightly stronger-than-expected inflation data from China. Oil prices dipped briefly on concerns about weaker Chinese demand, but the broader commodity price recovery after steep falls last week and easing concerns about a possible restructure of Greek debt kept markets in positive territory in line with gains in the U.S. and Europe. Japan's benchmark Nikkei 225 index was trading up 0.45 percent at 0425 GMT, while Australia's S&P/ASX 200 was up 0.9 percent and South Korea's Kospi was 0.8 percent higher after a holiday on Tuesday. Asian shares outside Japan rose 0.9 percent on Wednesday. The euro held on to gains in Asia, trading at $1.4402. The currency has been moving away from a three-week low, helped by stabilising commodity prices and chances of another aid package for Greece. Some traders said selling based on Greece worries could subside though the currency may remain vulnerable. CHINA DATA China's headline consumer price inflation slowed to 5.3 percent in April from a 32-month high of 5.4 percent a month earlier, but missed market forecasts for a decline to 5.2 percent. [ID:nL3E7GB06W] The overall data was mixed with industrial output considerably weaker than expected, climbing 13.4 percent in April and retail sales also falling below forecasts. "The economy is slowing, but not very seriously," said Chen Gang, an economist with CEBM in Shanghai. "It is still far from the warning line for the Chinese leadership. There is no room for the central bank to relax its monetary tightening." The inflation data followed trade figures on Tuesday that suggested still-strong global demand, although a slowdown in imports raised concerns for some analysts about slower growth. Analysts said it was clear the economy was slowing but were divided on the likely policy response to curb inflation. China's central bank has raised interest rates four times and since October, and Premier Wen Jiabao has signaled a hawkish stance for the coming months, to bring inflation under control. The government has a 4 percent ceiling on annual inflation. Commodity prices, which have been recovering from last week's near-record sell-off, eased slightly, although spot gold edged up 0.4 percent to 1520.74, heading for a fourth day in a row of gains. Brent crude initially fell towards $117 as the inflation data rekindled concern that Beijing's efforts to cool the economy of the world's second-largest oil user would erode energy demand. Brent was trading at $117.45 at 0425 GMT, continuing the march back from last week's steep fall as rising waters along the Mississippi River threatened to disrupt petroleum plants in Louisiana in the next two weeks. The Australian dollar , which is sensitive to Chinese demand for the country's coal and iron ore, was unchanged at $1.0855. * For Reuters Global Investing Bldg, click on here * For the Macro Scope Bldg, click on blogs.reuters.com/macroscope * For Hedge Fund Bldg, click on blogs.reuters.com/hedgehub (Editing by Ramya Venugopal)

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