Asian equities rallied higher on Tuesday following a rally on Wall Street.
Traders are again cautiously optimistic about the potential for progress in the costly trade war between the US and China.
Japan's benchmark Nikkei rose 1.1 percent, Hong Kong's Hang Seng rose initially, but reversed and tumbled nearly 0.2 percent, and China's Shanghai Composite gained 1.4 percent as China's industrials fell Report in July again made gains.
MORE FROM FOXBUSINESS.COM  In Europe, German GDP declined by 0.1
percent in the second quarter, which was in line with expectations.
USA The equity futures indicated a decline of 0.2 percent.
The Wall Street rally on Monday started early after President Trump said his negotiators received encouraging phone calls from China on Sunday, despite the Chinese Foreign Ministry's denial of such calls.  Ticker
| I: DJI
|| DOW JONES AVERAGE VALUE
|| +269.93 [19659019019019016SP500
|| S & P 500
|| + 1.10%
| I: COMP
|| NASDAQ COMPOSITE INDEX
|| +132701] The S & P 500 rose by 31.27 points or 1.1 percent, the Dow Jones Industrial Average by 269.93 points or 1.1 percent, and the Nasdaq, which is heavily weighted by technology stocks, by 101.97 points, or 1.3 percent.
The most important US in August, a volatile month for the M, the indices are each on the verge of losing 3 percent or more, while investors are trying to assess whether trade conflicts and the slowing economy are driving the US into recession will lead.
CLICK HERE TO READ MORE ABOUT FOX BUSINESS's sale on early Monday, as indices in Asia closed lower, until Trump said his traders have received two "very good calls" from China.
The Associated Press contributed to this article.
Tags Asian Optimism Stocks Strongest Trade USChina war