Investors were also monitoring the political turmoil in France as the government there teetered on the brink of collapse, leaving the euro languishing close to a one-week low.
The Chinese yuan faced its own challenges from the growing threat of more US tariffs on China, pushing it down to a 13-month trough.
Japan’s tech-heavy Nikkei rallied 2.2% in afternoon trade, and South Korea’s KOSPI advanced 1.8%. Taiwanese shares gained 1.4%.
Australia’s stocks benchmark rose 0.6% and reached a fresh all-time high.
Singapore’s Straits Times index rose more than 1% to a 17-year peak.
However, Chinese stocks were heavy, with Hong Kong’s Hang Seng managing only a 0.1% rise and mainland blue chips falling 0.4%.
MSCI’s broadest index of Asia-Pacific shares added 1%.
Both S&P 500 and Nasdaq futures pointed slightly higher after the cash indexes renewed their record peaks on Monday, helped by strong gains for most of the so-called Magnificent 7 (MAG7) high-tech stocks, including a nearly 19% surge for Facebook parent Meta Platforms and a 12% jump for Tesla.
“Equity hedges have been unwound, which speaks to a market confident of a grind higher into year-end,” said Chris Weston, head of research at Pepperstone, referring to the bull run for US equities, and particularly the “MAG7”.
“Microsoft and Meta would be my picks that lead us higher from here,” said Weston.
Microsoft advanced 7.5% overnight. The other “MAG7” stocks are Google parent Alphabet, Amazon, Apple and Nvidia.
Pan-European STOXX 50 futures shook off France’s political woes to advance 0.4%.
In currencies, the US dollar added 0.4% to 150.10 yen, trying to put some distance from yesterday’s low of 149.09, the weakest level since Oct 21.
The dollar received some support overnight from better-than-expected US manufacturing data, which also showed a mitigation in price increases.
However, the greenback came under renewed pressure as Federal Reserve governor Christopher Waller said he is “leaning toward” a rate cut on Dec 18.
Traders currently see about a 75% chance of a quarter-point cut at this month’s Fed meeting, up from 66% a day earlier and 52% a week ago, CME’s FedWatch Tool showed.
The two-year US Treasury yield dipped to 4.1877% today, heading back towards the four-week low of 4.1550% from Friday.
JOLTS job openings – a preferred gauge of Fed officials – is due later today, ahead of the monthly payrolls figures on Friday.
The yen, meanwhile, has been supported by rising speculation that the Bank of Japan (BOJ) will raise rates by a quarter point on Dec 19, with traders currently putting the odds at around 58%.
“Providing USD/JPY remains below the 151/152 resistance zone, the risks are for a deeper decline towards 145.00, which may prove too conservative if the BOJ hikes rates and the Fed cut rates,” said Tony Sycamore, an analyst at IG.
The euro eased 0.1% to US$1.0489, after dropping about 0.7% overnight and hitting lows of US$1.046125.
The French government appeared all but certain to collapse later this week after far-right and left-wing parties submitted no-confidence motions yesterday against Prime Minister Michel Barnier.
Sterling fell 0.1% to US$1.2646.
The yuan sank as low as 7.3145 per dollar in offshore trading, the weakest since November of last year.
US President-elect Donald Trump demanded at the weekend that BRICS member countries – which include China – commit to not creating a new currency or supporting another currency to replace the dollar.
He said they would otherwise face 100% tariffs.
Less than a week earlier, Trump said he would hit China with an additional 10% levy on top of a campaign pledge of tariffs in excess of 60% on Chinese goods.
Gold remained mired around US$2,640, following its retreat from an all-time peak of US$2,790.15 on Oct 1.
Oil prices were little changed near two-week lows as traders awaited the outcome of an Opec+ meeting later this week.
Brent crude futures added 12 cents to US$71.95 per barrel and US West Texas Intermediate crude rose 5 cents to US$68.15 per barrel.