By Hideyuki Sano
TOKYO (Reuters) – Asian stocks rose on Tuesday when investors hoped for a new round The US-China trade negotiations will help resolve a dispute that has destroyed global growth and some corporate earnings.
Improving market sentiment was news that US regulators reached a preliminary cross-border financing agreement that would avert another partial public shutdown due to start on Saturday. They were more than 0.5 percent.
MSCI's widest index for Asia Pacific stocks outside Japan added 0.3 percent.
Rose 0.6 percent, South Korea climbed 0.4 percent and Australian shares rose 0.4 percent.
Japan's advanced 2 percent after a market holiday Monday, lifted by a weaker yen.
U.S. And Chinese officials expressed the hope that the new round of negotiations that began in Beijing on Monday would bring them closer to facilitating their monthly trade war.
Beijing and Washington are trying to hammer a deal before March 1
"There will be no winner in a trade war. So at some point they will probably strike a deal," said Mutsumi Kagawa, global strategist at Rakuten Securities in Tokyo.
The trade dispute has already begun to affect global growth, affecting business confidence, factory activity, and disrupting supply chains. The concern is that a prolonged Chinese-US tariff could damage corporate earnings globally.
Analysts now expect US earnings for the current quarter to fall by 0.2 percent from last year, which will be the first contraction since Q2 2016.
In the FX market, the dollar held firm and had reached eight straight sessions against a basket with six main currencies for Monday, its longest rally for two years.
Although the Federal Reserve's poor turn turned the dollar earlier this year, some analysts noted that the US currency still has the highest yield among major peers and that the Fed is continuing to shrink its balance.
"We see the strength of the dollar mainly as a result of Fed's balance sheet," said Makoto Noji, main currency and foreign bond strategist at SMBC Nikko Securities.
Growing signs of a loss of momentum in the global economy have also lifted the US currency, most recently led by the European Commission's downgrade of growth in Europe, making the dollar a better investment setup by default.
The dollar index rose to its highest level for almost three months, at 97,123, on Monday. It lasted at 97,042.
In contrast, the euro fell to as low as $ 1.1267, the weakest in 2-1 / 2 months and last traded at $ 1,1285.
The dollar turned up to a six-week high of 110.55 yen.  Oil prices crossed after fall on Monday as traders weigh support from OPEC-led security of supply and a slowdown in the global economy.
futures are traded at $ 52.56 per. barrel, an increase of 0.3 percent. rose 0.6 percent to $ 61.87 per month. barrel.
(This version of the story corrects quotation in 15th section)