(Corrects dollar index quotation in the 12th paragraph)
By Hideyuki Sano
Improving market sentiment was news that U.S. lawmakers reached a tentative deal on border security funding that would avert another partial government shutdown due to start on Saturday. The S&P 500 e-mini futures were up more than 0.5 percent.
The Shanghai Composite Index rose 0.6 percent, South Korea's KOSPI climbed 0.4 percent and Australian shares were up 0.4 percent.
Japan's Nikkei advanced 2 percent after a market holiday on Monday, lifted by a weaker yen.
Beijing and Washington are trying to hammer out a deal before a March 1 deadline, without which U.S. tariffs on $200 billion worth of Chinese imports are scheduled to increase to 25 percent from 10 percent.
The trade dispute has already started to impact global growth, hitting businesses confidence, factory activity and disrupting supply chains. The worry is that a protracted Sino-U.S. tariff row could severely hurt corporate earnings globally.
Analysts are now expecting U.S. corporate earnings for the current quarter to drop 0.2 percent from last year, which would be the first contraction since the second quarter of 2016.
In the currency market, the dollar held firm, having gained for eight straight sessions against a basket of six major currencies until Monday, its longest rally in two years.
Although the Federal Reserve's dovish turn dented the dollar earlier this year, some analysts noted the U.S. currency still has the highest yield among major peers and that the Fed continues to shrink its balance sheet.
Growing evidence of a loss of momentum in the global economy has also lifted the U.S. currency, most recently led by the European Commission's downgrade of growth in Europe, making the dollar a better investment option by default.
The dollar's index rose to its highest levels in almost three months to 971.123 on Monday. It last stood at 97.042.
In contrast, the euro dropped to as low as $1.1267, its weakest in 2-1/2 months, and last traded at $1.1285 .
The dollar popped up to a six-week high of 110.55 yen .
U.S. crude futures traded at $52.56 per barrel, up 0.3 percent. Brent crude rose 0.6 percent to $61.87 per barrel.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)