USA stocks were poised for a solid opening with Dow futures and the broader S&P 500 futures 0.5 percent higher.
The Dow Jones Industrial Average rose 215.95 points, or 0.99 percent, to 22,013.74, the S&P 500 gained 20.28 points, or 0.82 percent, to 2,481.71 and the Nasdaq Composite added 55.65 points, or 0.87 percent, to 6,415.84.
All eleven of the S&P 500's main sectors finished in positive territory, with financials and information technology shares leading the rally.
The S&P 500 financial index .SPSY jumped 1.64 percent, with JPMorgan up 1.83 percent and insurer Travelers TRV.N up 2.7 percent.
It had slumped to a 10-month low of 107.320 yen on Friday, when Hurricane Irma threatened Florida and as financial markets braced for the possibility of another missile or nuclear test to mark North Korea's founding day on September 9.
- The euro declined 0.7 percent to $1.1952, the first retreat in more than a week.
Shares of Florida insurers Heritage Insurance Holdings Inc HRTG.N, HCI Group Inc HCI.N and Universal Insurance Holdings Inc UVE.N all rose at least 13 percent or more.
The index rose 0.60 percent on Monday, its largest gain this month, as receding worries about North Korea and Hurricane Irma helped lift investor risk sentiment.
The relief over North Korea and a weaker yen JPY= helped the Tokyo stock market .N225 to its best session since June.
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US stocks were poised open at or near record highs, with Dow futures and the broader S&P 500 futures up 0.3 percent.
The index had hit a more than 2-1/2-year low of 91.011 on Friday as investors fretted about the short-term impact of Irma on the US economy and simmering tensions with North Korea.
The index had risen on Monday as 10-year U.S. Treasury yields rose 8 basis points to 2.125 percent, their biggest daily in almost two months.
The dollar index .DXY , which tracks the greenback against a basket of six major currencies, was up 0.66 percent at 91.955.
FILE PHOTO - A US one-hundred dollar bill (C) and Japanese 10,000 yen notes are spread in Tokyo, in this February 28, 2013 picture illustration.
- The yield on 10-year Treasuries rose eight basis points to 2.13 percent, the highest in a week.
In Europe, Germany's DAX was up 0.6 percent at 12,550 while the CAC 40 in France was 0.7 percent higher at 5,213.
Losses were capped by weekend talks between Saudi Arabia's energy minister and counterparts over a possible extension to a pact to cut global oil supplies beyond next March.
USA crude was trading 23 cents firmer at US$47.71 a barrel, while Brent rose 21 cents to US$53.99. USA gold futures GCcv1 fell about 1.3 percent to settle at $1,335.70 an ounce.