In Asian Equity Markets indices traded higher on Tuesday as investors watch for developments on the U.S.-China trade front following a recent escalation in tensions. Mainland Chinese stocks rose in early trade, as the Shanghai composite added 0.91% and the Shenzhen component gained 1.28%. Japan’s Nikkei 225 gained 1.25%, as shares of index heavyweight and conglomerate Softbank Group jumped 2.76%. The Topix also rose 1.03%. South Korea’s Kospi added 0.91% as chipmaker SK Hynix saw its stock rise 1.81%. Australia’s S&P/ASX 200 edged up 0.33%.

In Currency Markets the U.S. dollar held firm on Tuesday after some signs of rapprochement between Washington and Beijing soothed investors’ nerves after trade tensions between the world’s biggest economies escalated yet again late last week and over the weekend. The dollar traded at 106.02 yen, flat in early Asia after having rebounded from near eight month lows of 104.46 touched on Monday. The euro stood at $1.1101, having shed 0.4% in the previous session. Sterling traded at $1.2221, after a 0.5% fall on Monday.

In Commodities Markets oil prices rose on Tuesday after U.S. President Donald Trump said he expected to sign a trade deal with China, calming nerves after a round of tit-for-tat tariff hikes had sent markets reeling. Brent crude was up by 27 cents, or 0.5%, at $58.97 a barrel, after falling 1% the previous session, dropping for a third day in a row. U.S. crude was up by 23 cents or 0.4% at $$53.87 a barrel, having also dropped 1% on Monday for a fourth day of declines. Meanwhile, U.S. crude oil and gasoline inventories likely fell last week, a preliminary Reuters poll showed on Monday.

In US Equity Markets stocks rose on Monday, following a sharp sell-off in the prior session, after U.S. President Donald Trump predicted a trade deal with China, cooling investor concerns after a ramp-up in rhetoric derailed markets last week. Shares of tariff-sensitive companies rose in response. Apple Inc’s 1.90% gain provided the biggest boost to each of the major indexes. The S&P 500 gained 1.10%, to 2,878.38, and the Nasdaq Composite rose 1.32%, to 7,853.74. The Philadelphia Semiconductor index .SOX added 0.86% after falling more than 4% on Friday.

In Bond Markets the U.S. yield curve inverted further on Monday with yields on shorter-dated yields rising more than longer-dated ones, as upcoming supply of shorter-maturity Treasury debt outweighed the easing of trade tensions between China and the United States. Benchmark 10-year Treasury yields fell to 1.443% earlier on Monday, their lowest since July 2016, as another round of tit-for-tat tariffs between the world’s biggest economies last week touched off a wave of safe-haven demand for low-risk government bonds.