Asian stocks joined the global rally and the U.S. dollar held on to most of its gains on Tuesday as investors heaved a sigh of relief after a temporary halt in the trade war between the U.S. and China eased worries of a global recession.

Global markets rose after the US and China slashed tariffs for 90 days in a significant de-escalation of the trade war. The US will cut the additional tariffs imposed on Chinese goods to 30 per cent from 145 per cent while Chinese duties on US imports will fall to 10 per cent from 125 per cent, the two countries announced on Monday.

The 145 percent U.S. tariff on Chinese goods will come down to 30 percent for 90 days, while the two sides continue talks aimed at resolving their differences.