Most Asian stocks rose, following a rally in US equities, on optimism the US-China trade truce marks the end to an all-out tariff war.
Japanese shares led gains in the region, with the Topix rising for a 13th straight day, while benchmark indexes also advanced in Australia and Taiwan.
The Hang Seng Index slipped with US stock futures after both had jumped on Monday. Treasuries edged higher in Asia, while the dollar fell.
The broad return of risk appetite comes after trade negotiators from the world’s two biggest economies announced Monday a de-escalation in tariffs.
In a carefully coordinated joint statement, the US slashed duties on Chinese products to 30% from 145% for a 90-day period, while Beijing dropped its levy on most goods to 10%.
“There’s very clearly upside risk for the broader risk asset spectrum now as markets will likely extrapolate a higher likelihood of further deals in the coming weeks,” HSBC Bank strategists including Max Kettner wrote in a note.
