In Singapore, Asian stocks saw a rise on Tuesday, following the positive trend on Wall Street. Investors were encouraged by the possibility of U.S. tariffs being less severe than anticipated. The dollar remained close to three-week highs due to positive economic data.

Concerns about the potential impact of reciprocal tariffs promised by U.S. President Donald Trump on the global economy have been causing apprehension among investors. Trump hinted at upcoming automobile tariffs while mentioning that not all proposed levies would be implemented on April 2 and that certain countries might receive exemptions.

The optimism among investors pushed U.S. stocks up, with the S&P 500 reaching its highest level in more than two weeks and the Nasdaq soaring over 2% led by a surge in tech stocks. Asian markets followed suit, with Japan's Nikkei and Taiwan stocks climbing over 1%. European futures also indicated an upward trend during early Asian trading hours.

While Chinese stocks were more subdued with Hong Kong's Hang Seng index dropping 1%, and the blue-chip CSI300 index remaining relatively unchanged. Despite the positive market sentiment, analysts remained cautious about the sustainability of the rally given lingering policy risks.

Economists such as Gary Dugan from Global CIO Office and Kristina Clifton from the Commonwealth Bank of Australia expressed concern that markets may not have factored in enough negative news regarding the impact of the upcoming tariff announcements on the world economy. The dollar strengthened against the yen and euro following strong U.S. economic data, including an increase in the S&P Global's flash U.S. Composite PMI Output Index, indicating expansion in the private sector. However, the outlook on the economy remains mixed, with some indicators suggesting potential weaknesses despite the PMI figures showing signs of recovery.