Investors sold safe haven Treasurys, as stocks looked more stable to start March. The three major U.S. averages climbed more than 2 percent each Tuesday. Both WTI and Brent crude oil prices also rose.
A surprise rate cut in China on Monday and positive U.S. data helped to boost confidence.
Key economic releases due on Tuesday included the February manufacturing and final manufacturing PMI surveys due along with vehicle sales figures for the same month.
The ISM manufacturing index showed the U.S. economy's manufacturing sector contracted in February but at a slower pace than the previous month. The index of national factory activity rose to 49.5 from 48.2 the month before, above expectations of 48.5 from a Reuters poll of 88 economists. And construction spending rose to an eight-year high.
U.S. auto sales in February showed no signs of decelerating as most major automakers on Tuesday posted big gains from a year ago, Reuters reported.
Tuesday is also "Super Tuesday," when 12 states hold primary elections, and it could be a major turning point for presidential candidates in both parties.
The PBOC cut the ratio by 0.5 percentage points after the country's markets closed Monday. The cut, which came into effect Tuesday, means that most large Chinese banks will have a reserve ratio of 17 percent, Reuters reported.
— Reuters contributed to this report.