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• European markets opened higher Tuesday as tensions between the U.S. and North Korea showed signs of subsiding, prompting investors to return to riskier assets.

The pan-European Stoxx 600 started the day up 0.32 percent with the majority of sectors and all major bourses in positive territory.

• Asian shares rose and the dollar rallied on Tuesday after North Korea's leader signaled that he would delay plans to fire a missile near Guam, easing tensions and prompting investors to move back into beaten-down riskier assets.

Futures suggested the cheer was carrying over into European trading, with the Eurostoxx 50 STXEc1 up 0.2 percent, DAX futures FDXc1 up 0.3 percent and FTSE futures FFIc1 up 0.1 percent.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was 0.3 percent higher in afternoon trade, with Australia up 0.4 percent. South Korea's markets were closed for a holiday.

Helped as well by a weaker yen, Japan's Nikkei stock index .N225 finished up 1.1 percent, a day after skidding 1 percent to a 3-1/2-month low.

• Chinese shares closed higher on Tuesday, but weakening sentiment ate away at gains from the morning session, even as stronger profits at commercial banks helped to support banking shares.

The blue-chip CSI300 index rose 0.3 percent, to 3,706.06 points, while the Shanghai Composite Index gained 0.4 percent, to 3,251.26 points.

The Hang Seng index added 0.4 percent to 27,358.09, lifted by strong performance in mainland banks.

Reference: Reuters, CNBC