I think in most cases it can be extremely rude. From a very young age, I was taught that to be polite, we should respond to people by speaking, not by nodding or with hand gestures, etc. Also, it's speaking full words, not "yeah" or "uh huh". There are obvious exceptions, if in a crowded, noisy bus terminal and you need to acknowledge someone who's trying to communicate with you from far away, a thumbs-up or wave is appropriate. ~