US 10-year Treasury yields edged lower after hitting a one-year high on Monday. Nasdaq futures bounced 1.1%, paring some losses from a sell-off in technology-related shares on Monday that pushed the index into correction territory.
Reflecting moves in US yields, Indonesia's 10-year benchmark yield came off a five-month high hit earlier in the session, while its Indian counterpart also slipped.
Positive cues from US Treasury Secretary Janet Yellen aided sentiment and boosted equities.
Yellen said on Monday that US President Joe Biden's $1.9 trillion coronavirus aid package would provide enough resources to fuel a "very strong" U.S. economic recovery.
Singapore's benchmark index climbed over 1%, while India and Malaysia added about 0.5% each.
South Korean shares, which shed as much as 2% earlier in the day on the back of a sell-off in technology stocks, recouped some losses to trade 0.7% lower by 0740 GMT.
A slipping US dollar drove a recovery in most emerging Asian currencies.
Philippine peso, the worst performing currency in the region so far this year, strengthened 0.5%.
Singapore dollar and the Indian rupee added 0.2% each.
However, bond yields have continued to rise as investors fret over a potential rise in inflation due to a flurry of pandemic-related stimulus measures.
While the US Federal Reserve has downplayed the rise in yields so far, the European Central Bank will discuss on Thursday the merits of intervening.
Emerging Asian bond yields have displayed strength, as investors continued to find refuge in them as well as relative stability offered by Asian junk-rated debt.
"With risk of US nominal/real yields heading higher, this could pose a challenge to some central banks - notably Indonesia, to flexibly manage domestic financial conditions through its bond purchase program without undue pressure on IDR," Citi Research analysts wrote in a note.
Overall FX weakness will likely be more than welcomed by the central banks of Malaysia and Thailand to ease monetary conditions, they added.
Top Glove Corp Bhd, the world's largest medical gloves manufacturer, climbed nearly 5% after posting a record profit for a fourth straight quarter as continued demand for gloves globally boosted sales. - Reuters