Shares in Asia jumped in Tuesday morning trade following a dramatic bounce back overnight on Wall Street.
Stocks in Australia also traded higher, with the S&P/ASX 200 up 1.28%.
Overall, the MSCI Asia ex-Japan index traded 0.92% higher.
Central bank watch
Investors on Tuesday will likely focus on central bank announcements, with the Reserve Bank of Australia set to release the minutes of its recent monetary policy meeting at around 9:30 a.m. HK/SIN. The Bank of Japan is also set to release its monetary policy statement sometime on Tuesday.
The U.S. Federal Reserve announced Monday more measures to support the market. The Fed said it would buy individual corporate bonds, marking a broader approach to corporate bond buying. Previously indicating it would eventually buy bonds on the primary market, Monday’s announcement by the U.S. central bank marked an expansion of that into the secondary market.
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 96.565 after slipping from levels above 97 seen earlier.
Overnight on Wall Street, the Dow Jones Industrial Average closed 157.62 points higher at 25,763.16 while the S&P 500 gained 0.8% to end its trading day at 3,066.59. The Nasdaq Composite advanced 1.4% to 9,726.02.
The moves upward came following a sharp reversal from earlier losses during the trading day on Wall Street, with the Dow dropping more than 760 points before rebounding. The S&P 500 and Nasdaq fell as much as 2.5% and 1.9%, respectively.
What’s on tap for Tuesday:
- Australia: Reserve Bank of Australia monetary policy meeting minutes at 9:30 a.m. HK/SIN
- Japan: Bank of Japan interest rate decision
— CNBC’s Fred Imbert contributed to this report.