Asian stocks rose Tuesday amid optimism countries will strike US trade deals, though Tokyo's Nikkei sank after Donald Trump threatened to impose a fresh tariff rate on Japan as he hit out at the country over rice and autos.

The dollar also extended losses as investors grow increasingly confident the Federal Reserve will cut interest rates at least twice this year, with keen interest in US jobs data due this week.

Investors are also keeping an eye on the progress of the US president's signature multi-trillion-dollar tax-cutting bill, which is being debated in the Senate.

While few agreements have been reached as the White House's July 9 deadline approaches, equity markets are enjoying a healthy run-up on expectations that breakthroughs will be made or the timeline will be pushed back.

Comments from Trump and some of his top officials suggesting there could be some wiggle room have added to the positive mood, with National Economic Council director Kevin Hassett telling CNBC a "double digit" number of pacts, including frameworks, were near.

News that Canada had rescinded a tax affecting US tech firms,........

© International Business Times