Asian markets mostly rose Tuesday with investors looking ahead to the release of US economic data and the earnings reports of tech titans this week.

Oil prices steadied following sharp falls Monday on relief that Israel's strikes on Iran spared the country's energy infrastructure and that the risk of escalation in the Middle East had eased.

Concerns in the oil market have now shifted back to focus on potential oversupply in 2025 and a slowdown in demand from China, the world's largest oil importer, according to analysts.

US stocks closed higher Monday, boosted by the cheaper oil, and as investors look ahead to a busy week of economic indicators with the market already hovering near record highs.  

The US government will release its third quarter GDP growth estimate this week, as well as its closely watched monthly labor market report, ahead of the Federal Reserve's next rate decision just after the US presidential election.

Investors are also eyeing the earnings reports of major tech companies this week including Google parent Alphabet, Amazon, Apple, Facebook-parent Meta, and Microsoft. 

Asia largely took its lead from Wall Street with Tokyo, Hong Kong, Shanghai, Sydney, Kuala Lumpur and Jakarta all higher, while Seoul, Singapore and Taipei retreated.

Tokyo added to the previous day's strong gains as the weaker yen boosted shares despite the political uncertainty following Sunday's general election which left the ruling coalition short of a majority.

Investors are also awaiting the Bank of Japan's rate decision later this week.

"Although BoJ monetary policy will not be directly affected by the political machinations underway to find a governing coalition in Tokyo, it is likely that the next government will need to scale up fiscal spending," said Alvin Tan of RBC Capital Markets.

"In this vein, there could be increased pressure on the BoJ to go slow on policy tightening."

Investors are also awaiting a key political meeting in Beijing next week for details of an expected major stimulus plan to support the Chinese economy, which has struggled to recover from the pandemic with growth dragged down a debt crisis in the property sector.

The People's Bank of China on Monday rolled out a new lending tool to inject liquidity into the market, with about 2.9 trillion yuan (US$407 billion) in loans set to expire in November-December.

"With the clock ticking, Beijing hopes this tool will prop up market sentiment and counter any looming liquidity crunch," said Stephen Innes, analyst at SPI Asset Management.

"The timing here isn't just tactical; it's essential. China's economic engine has been sputtering with soft demand and lackluster growth data, and with the potential shake-up of the US election looming enormous, stability in the financial markets is critical for Beijing," Innes said.

Key figures around 0345 GMT

Tokyo - Nikkei 225: UP 0.6 percent at 38,819.51 (break)

Hong Kong - Hang Seng Index: UP 1.1 percent at 20,834.55

Shanghai - Composite: UP 0.1 percent at 3,325.88

Euro/dollar: DOWN at $1.0813 from $1.0815 at 2040 GMT Monday

Pound/dollar: DOWN at $1.2970 from $1.2972

Dollar/yen: DOWNat 152.95 yen from 153.24 yen

Euro/pound: UP at 83.38 pence from 83.37 pence

Brent North Sea Crude: UP 0.4 percent at $71.71 per barrel

West Texas Intermediate: UP 0.5 percent at $67.70 per barrel

New York - Dow: UP 0.7 percent at 42,387.57 (close)

London - FTSE 100: UP 0.5 percent at 8,285.62 (close)