By Rae Wee

SINGAPORE, Sept 10 (Reuters) -Asian stocks reversed early losses to rise marginally on Tuesday following Wall Street's overnight rally, though concerns about a still-struggling Chinese economy kept sentiment in check.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was last up 0.2%, after falling 1.11% the previous session to hita one-month low.

Japan's Nikkei .N225 last traded 0.4% higher, helped by gains in financial and consumer names.

Wall Street staged an impressive rebound overnight, after all three major U.S. stock indexes surged more than 1%, recovering from last week's selloff.

"Risk-off sentiment stabilized overnight and U.S. equities rebounded on dips buying after Friday's sell-off," said economists at ING in a note.

"As the non-farm payrolls numbers failed to convince for a 50bp cut, markets are now looking to the U.S. inflation data to understand the pace of the Fed's rate cuts."

A reading on U.S. inflation is due on Wednesday, where expectations are for the headline number to have further slowed to an annual 2.6% in August.

"If the inflation number is any different, or significantly different from expectations, then the number of rate cuts (priced in) will be changed," said Jun Bei Liu, a portfolio manager at Tribeca Investment Partners.

"At the moment, I think the market is reasonably aggressive in pricing quite a lot this side of the year, and so that probably opens up for a bit more... volatility that we have seen in the last couple of weeks."

The Federal Reserve is all but certain to ease rates when it meets next week, with markets pricing in a 29% chance of an outsized 50-basis-point move. About 110bps worth of cuts are priced in for the rest of the year. FEDWATCH

U.S. futures were mixed on Tuesday, with S&P 500 futures ESc1 last up 0.02%, but Nasdaq futures NQc1 slipped 0.07%.

EUROSTOXX 50 futures STXEc1 tacked on 0.23% while FTSE futures FFIc1 lost 0.16%.

In currencies, the U.S. dollar was on the front foot, rising 0.22% against the yen JPY=EBS to 143.47.

The euro EUR=EBS was a touch lower at $1.1032, while sterling GBP=D3 eased 0.06% to $1.30655.

CHINA WOES

In Asia, concerns over China's growth outlook also cast a cloud over markets, after data on Monday showed the country's consumer inflation accelerated in August to the fastest pace in half a year but domestic demand remained fragile, and producer price deflation worsened.

That had sent Chinese stocks .CSI300 sliding to seven-month lows in the previous session while the yuan CNY=CFXS came under pressure on renewed calls for further stimulus measures from Beijing to prop up its economy.

In the offshore market, the yuan CNH=D3 was last 0.04% lower at 7.1234 per dollar.

"The stimulus, it clearly has to be more. But unfortunately, it's been done in very, very small parcels and targeted, and it just seems the economy is just not turning around very quickly," said Tribeca's Liu.

Trade data is due later on Tuesday, which could offer more clues on the pace of recovery in the world's second-largest economy.

Hong Kong's Hang Seng Index .HSI was last 0.22% higher, while the Hang Seng Mainland Properties Index .HSMPI fell 0.2%, extending its 3.5% fall from the previous session. .SS

Adding to headwinds for the Chinese economy were escalating trade tensions, after the U.S. House of Representatives on Monday passed a bill that aims to restrict business with China's WuXi AppTec 603259.SS, BGI and several other biotech companies on national security grounds.

In commodities, oil prices steadied, with Brent crude futures LCOc1 last up 0.42% to $72.14 a barrel, while U.S. crude CLc1 firmed 0.36% to $68.96 per barrel. O/R

Spot gold XAU= eased 0.03% to $2,504.34 an ounce. GOL/

Editing by Lincoln Feast.

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