In Asian Equity Markets stocks rallied as concerns over a potential trade war faded on Tuesday, with gains in the region led by Japan’s benchmark Nikkei. Japan’s Nikkei 225 jumped 2.14 percent. Exporters gained on the firmer dollar, with automakers, technology and manufacturers higher for the most part. Other large caps also recorded significant gains, with Fast Retailing up 3.03 percent. Over in South Korea, the benchmark Kospi advanced 1.32 percent, with gains seen across sectors, including chipmakers. Tech heavyweight Samsung Electronics jumped 3.76 percent and SK Hynix was up 5.24 percent. Elsewhere, the S&P/ASX 200 rose 1.13 percent, with all 12 of its sub-indexes trading in positive territory.

In Currency Markets the US dollar edged higher versus the yen on Tuesday, supported by receding fears about a trade war stemming from U.S. President Donald Trump’s proposed tariffs on imported steel and aluminum. The dollar edged up 0.1 percent to 106.30 yen, continuing a recovery from the greenback’s 16-month low of 105.24 yen set on Friday. The Canadian dollar nursed its losses, having set an eight-month low on Monday after Trump used proposed tariffs on steel and aluminum as a bargaining chip in talks to revamp NAFTA. The Canadian dollar last stood at C$1.2967 per U.S. dollar. On Monday, the Canadian dollar had set a low of C$1.3002, its weakest level since July last year.

In Commodities Markets oil prices rose on Tuesday for a third straight session, underpinned by robust demand forecasts and as ministers from OPEC touted the strength of its agreement with global producers to cut output in order to bolster the market. International benchmark Brent crude futures were at$65.61 per barrel, up 7 cents, or 0.11 percent. U.S. West Texas Intermediate (WTI) crude futures were at $62.67 a barrel, up 10 cents, or 0.16 percent. The International Energy Agency (IEA) said on Monday global oil demand was expected to grow over the next five years, while output from producers in the Organization of the Petroleum Exporting Countries (OPEC) would rise at a much slower pace.

In US Equity Markets stocks swung higher on Monday as investors said they were expecting U.S. President Donald Trump to back down on his threat to impose hefty tariffs on steel and aluminum imports. All 11 S&P sectors were higher, with the biggest boost coming from the information technology index, which was up 1.2 percent. Facebook, Amazon and JPMorgan were three of the biggest drivers. The S&P 500 had gained 1.13 percent, to 2,721.54 and the Nasdaq Composite added 1.05 percent, to 7,334.04. Shares of Clearside Biomedical jumped 37 percent after the drug developer’s eye drug met the main goal in a late-stage study, while Dermira plunged 64 percent after the company abandoned its acne drug.

In Bond Markets Japanese government bond prices slipped on Tuesday as Tokyo stocks surged amid an easing of trade war fears and reduced demand for safe-haven debt. The 10-year JGB yield rose half a basis point to 0.045 percent and the 20-year yield also rose half a basis point, to 0.535 percent. Treasuries yields rose on Monday. Yields were higher along the curve, but all traded within last week’s range. U.S. 2-year Treasury yields were at 2.244 percent. The long end was also under pressure, with 30-year yields last at 3.16 percent, both up between 1-3 basis points from Friday close. The yield on the U.S. benchmark government bond was at 2.884 percent, up 2.7 basis points from Friday close.