US stocks reached 15-month highs on Monday, with both the Dow Jones and S&P 500 up at least 1.5% on the first trading day of 2010.
The tech-heavy Nasdaq also climbed 1.6%, to close on its highest level in 16 months.
Investors were buoyed by data showing strong growth in the manufacturing sector, along with a pullback in the dollar.
Bank of America led Dow components, up 4.18% to $15.69 - while pharmaceutical giant Pfizer added 4.07% to $18.93.
Japan's Nikkei average hit a 15-month closing high on Tuesday on the back of the positive US session, with the index up 0.25% to 10,681.83. The broader Topix rose 0.4% to 919.57.
The FTSE 100 has opened lower however, as Kraft Foods stepped up its bid for UK giant Cadbury. At 8:30am, the FTSE was 15.93 points (0.29%) lower to 5,484.41.
Cadbury has fallen 1.49% to 794p after Nestle ruled itself out of an approach for the group, and Kraft offloaded an American pizza arm to boost cash for the hostile takeover bid.
Royal Bank of Scotland has continued to rise after yesterday's 9% gain, up 2.43% to 32.88p.
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