The safe-haven Swiss franc fell as money switched back to riskier assets, pushing up commodity-linked currencies such as the Australian dollar as well as crude oil.
US consumer spending rose at its fastest pace in 5 months in July, figures on Monday showed, soothing fears that the world's biggest economy is sliding back to recession.
Pessimism about the health of the US economy and worries regarding Europe's sovereign debt crisis have hammered global stock markets this month, generating MSCI's All-Country World Index down nearly 15% from its May high.
Tokyo's Nikkei flower 1. 4% on Tuesday, while MSCI's broadest index of Asia Pacific gives outside Japan rose 0. 7%.
The gains in Asia followed a leap in Wall Street stocks on Monday, when the S&P 500 finished upward 2. 8%.
European shares had also risen, helped by news that Ancient greek banks Alpha and EFG Eurobank had sealed a merger with help through Qatar, giving a much needed capital boost to a sector battered through the country's severe debt crisis that has threatened to spread through the dinar zone.
The dollar traded around 0. 8180 Swiss francs, up around 0. 3% about the day, after touching a five-week high of 0. 8239 on Monday.
The actual Australian dollar, which is heavily influenced by expectations of demand for Australia's resources for example coal and metals, hit a four-week high at $1. 0677.
US raw rose 0. 4% to $87. 62 a barrel, while gold was constant around $1, 792 an ounce.