Asian stocks traded higher on Tuesday though pared gains as a decline in Japanese shares weighed. The dollar weakened against most major currencies and Treasuries edged higher.
Shares in Hong Kong and China had led early gains in Asia after the S&P 500 Index posted its biggest two-day advance in 18 months. Japan’s equities returned from a holiday on a high note only to erase the move as a firmer yen pressured the shares of exporters. S&P 500 futures declined.

The 10-year Treasury yield fell back after touching 2.89 percent and German bunds steadied. West Texas Intermediate oil rose but remained under $60 a barrel.
Traders remained on edge following the tumultuous moves last week that wiped $2 trillion from U.S. stocks. Some investors are waiting for another dip in the markets before stepping back in. AMP Capital Investors’ Nader Naeimi -- who in September had about 30 percent of holdings in cash -- said this is a short-term recovery and there will be another leg down in equities going into the Federal Reserve’s March policy meeting.
“The plan is to buy on the second leg down,” Naeimi, Head of Dynamic Markets in Sydney, told Bloomberg TV. “Usually it’s best to wait for the market to build a base before committing heavily back into buying.”
Investors are eagerly awaiting U.S. consumer-price data due Wednesday, given that pressure on equities has been emanating from the Treasury market and the outlook for inflation.
Source: Bloomberg.com