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Shanghai - Asian stocks rose on Tuesday morning after US and most European markets advanced overnight, though the hangover from China's slowing growth still lingered.
But trading could be restrained with the Tokyo market on holiday and after the Reserve Bank of Australia left interest rates unchanged.
The US benchmark Dow Jones Industrial Average pushed back into positive territory for 2015 on Monday, rising 0.94%, lifted by a technical bounce in petroleum shares and data showing a seven-year peak in US construction spending.
US spending on building new homes, highways and other projects came in at an annual pace of $1.09trn in September, the highest level since March 2008.
That added to the cheer after an acceleration in eurozone manufacturing activity helped push most European stocks higher on Monday.
But China, the world's second largest economy, remains the spoiler after a closely watched measure of manufacturing activity showed contraction.
"The US rally could possibly spill over into Asia," Angus Gluskie, a managing director at White Funds Management in Sydney, told Bloomberg News.
On Monday, the broad-based S&P 500 gained 1.19%, while the tech-rich Nasdaq Composite Index jumped 1.45%.
"The area of weakness has been China, so as long as we can see there's stability in China's economy, markets will continue to rally," Gluskie said.
Sydney was up 1.17% after Tuesday's central bank decision to keep the cash rate at 2%, while Seoul advanced 0.56%.
In China, Shanghai edged up 0.16% but Hong Kong rose a stronger 1.01% in early trading, despite the weak manufacturing data.
China's Purchasing Managers' Index came in at 48.3 in October, below the 50 point mark which implies contraction, an independent survey issued by financial publisher Caixin Media showed on Monday.
It still beat the median estimate of 47.6 in a poll of economists by Bloomberg and marked the smallest contraction since June.
Asian stocks fell on Monday and oil prices dropped as investors fretted over the manufacturing data.
"The savage selling yesterday particularly looked to be overdone," Evan Lucas, a markets strategist at IG in Melbourne, said in an e-mail to clients.
Oil prices rebounded in Asia on Tuesday, buoyed by bargain hunting ahead of the release of US government data that will gauge crude demand in the world's biggest economy.
At around 03:10 GMT on Tuesday, US benchmark West Texas Intermediate for delivery in December was up 16 cents at $46.30 and Brent crude for December was trading 11 cents higher at $48.90 a barrel.
On currency markets, the euro traded at $1.1013 from $1.1014 in US trade while the dollar bought ¥120.73 compared with ¥120.77.
