Asian stocks closed mostly higher, with the Nikkei 225 up more than 2 percent. The Shanghai composite closed a touch higher, while the Hang Seng closed 0.43 percent higher.
China's consumer price index rose 2.3 percent year-over-year for a third-straight month in April, helped primarily by a spike in food prices, Reuters said. Declines in the producer price index eased in April with a drop of 3.4 percent from a year earlier, a smaller decline than forecast and March's 4.3 percent decline.
In China, rebar, or reinforced steel, posted their biggest intraday fall in seven years on Tuesday with an intraday decline of 7.6 percent, Reuters said. Iron ore lost as much as 6 percent intraday, the newswire said.
Hopes economic stabilization would boost raw material demand drew a rush of retail buyers into China's commodities futures in April and pushed up prices, but renewed worries about demand has reversed those gains.
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The Dow Jones industrial average closed up 222.44 points, or 1.26 percent, at 17,928.35, with Goldman Sachs leading advancers and Pfizer and Wal-Mart the only decliners.
The Dow transports closed 1.2 percent higher with United Continental leading advancers.
The S&P 500 closed up 25.70 points, or 1.25 percent, at 2,084.39, with energy leading all 10 sectors higher.
The Nasdaq composite closed up 59.67 points, or 1.26 percent, at 4,809.88.
The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, fell below 14.
About three stocks advanced for every decliner on the New York Stock Exchange, with an exchange volume of 841 million and a composite volume of nearly 3.5 billion in the close.
Gold futures for June delivery settled down $1.80 at $1,264.80 an ounce.
—Reuters contributed to this report.