MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.9 percent, while shares in China nudged up 0.1 percent. Australian stocks gained two percent for the biggest intraday gain since July 21. Tokyo shares also jumped by more than one percent, Reuters reported.

Oil futures gave up their overnight gains and fell in Asia due to nagging worries about an increase in the supply of crude. US stock futures ESc1 were 0.02 percent higher in Asia.

An industry gauge released overnight indicated US manufacturing activity expanded in July at the fastest pace in more than a year, which helped Wall Street shares rise.

However, some investors remain cautious due to worries about a resurgence of the coronavirus and a diplomatic tussle over Chinese tech companies’ operations in the United States.

“It has been an upbeat US trading session and Asia will absorb the leads accordingly,” Chris Weston, head of research at Pepperstone, said in a market note.

The Dow Jones Industrial Average rose 0.89 percent, the S&P 500 gained 0.72 percent, and the Nasdaq Composite advanced 1.47 percent to set a record closing high as investors cheered the manufacturing data.

That data also caused the US Treasury curve to steepen, an indication of improved investor sentiment.

US stocks received an additional lift from Microsoft, which jumped 5.6 percent after it formally declared interest in buying the US operations of TikTok, a popular video-sharing app owned by Chinese tech company ByteDance. US President Donald Trump has threatened to ban TikTok unless its US operations are sold off from ByteDance.

Washington is also preparing to take action against other Chinese software companies that could share user data with Beijing, setting the stage for further conflict.

The dollar held steady against its counterparts as traders awaited progress in negotiations for additional economic stimulus.

Chicago Federal Reserve Bank President Charles Evans called forcefully for more US government spending to support the economy, saying “demand trouble is brewing” as existing relief policies expire.

Spot gold XAU was down 0.09 percent on Tuesday but still near a record high of $1,984.66 set on Monday amid support from virus fears.

US crude CLc1 dipped 0.61 percent to $40.76 a barrel, while Brent crude LCOc1 fell 0.59 percent to $43.89 per barrel due worries about extra supply coming to market.

Russia has started to increase oil and gas output. Other oil producers are also expected to increase output this month after OPEC and its allies agreed to ease production curbs.

An economic downturn since last autumn has seen widespread layoffs and swinging pay cuts that have plunged 45 percent of the population into poverty, AFP reported.

The worst economic turmoil since the country’s 1975-1990 civil war has sparked an unprecedented street movement against a political class accused of being corrupt and incompetent.

After the Lebanese pound hit a new low Thursday, down around 70 percent from its official rate, protesters took to the streets after sundown, setting tires on fire and blocking roads including in the capital Beirut.

Demonstrators chanted against a government that has been unable to arrest the economic decline, as well as against governor of the central bank, Riad Salame.

“Riad Salame, game over,” read the front page of the Al-Akhbar newspaper on Friday morning.

“Revolution of hunger,” Al-Joumhouria daily said.

Prime Minister Hassan Diab chaired an “urgent” cabinet meeting, also attended by the central bank governor, as well as representatives of the banking association and money changing syndicate, the National News Agency said.

A syndicate spokesman said the central bank had agreed to “inject dollars” into the market, hoping to reverse the decline in the pound’s unofficial exchange rate.

Lebanese media reported the rate had reached up to 6,000 pounds per dollar on the black market on Friday, compared to the official peg of 1,507 in place since 1997.

After a meeting with Diab and President Michel Aoun, Parliament Speaker Nabih Berri spoke of unnamed measures to bring the exchange rate below 4,000 pounds to the dollar.

Tensions have grown recently between the government and the central bank’s governor.

Experts say the cabinet would like to see Salame removed from the position he has held since 1993.

Protesters accuse Salame of having encouraged a policy of increasing state borrowing over the decades that they say benefited only the country’s banking and political elite.

Anger against banks has also risen in recent months, after they banned all transfers abroad and gradually restricted dollar withdrawals, forcing those in need to buy the greenback at much higher rates on the black market.

The previous government headed by Saad Hariri stepped down under street pressure just weeks into those demonstrations, and Diab’s cabinet started working earlier this year.

The central bank late Thursday hit out at “baseless” information on social media of “exchange rates at levels far from reality, which mislead citizens”.

Lebanon – one of the most indebted countries in the world with sovereign debt of more than 170 percent of its GDP – went into default in March.

It started talks with the International Monetary Fund last month in a bid to unlock billions of dollars in financial aid, but these are still ongoing.

Unemployment has soared to 35 percent nationwide, with Lebanese living in the impoverished port city of Tripoli especially affected.

Traders in the northern city called for a “general strike” on Friday over “heavy losses” and their “plummeting buying power”.

Lebanon enforced a lockdown in mid-March to stem the spread of the novel coronavirus, which dealt a further blow to businesses already reeling from the raging economic crisis.

Lebanon has recorded some of the lowest rates in the Middle East since the start of the pandemic, with just 1,402 cases of COVID-19, including 31 deaths as of Thursday.