U.S. markets closed higher on Monday reversing early session losses on hopes for a Greek debt deal and an end to the stand-off with international creditors. Rising oil prices helped the energy sector. Earlier the mostly weaker-than-expected U.S. economic data led shares lower. The Institute for Supply Management's manufacturing purchasing managers' index for the U.S. declined to 53.5 in January from 55.5 in December, missing expectations for a decline to 54.9.

Personal spending decreased 0.3% in December, missing expectations for a 0.1% decline, after a 0.5% rise in November. November's figure was revised down from a 0.6% increase. That was the largest decline since September 2009.Personal income climbed 0.3% in December, exceeding expectations for 0.2% increase, after a 0.3% rise in November. November's figure was revised down from a 0.4% gain. The personal consumption expenditures (PCE) price index excluding food and energy was flat in December, in line with expectations, after a flat reading in November.

The DOW JONES index added +1.14%, closing at 17,361.04 points. The S&P 500 rose by +1.30% in late trading with a final quote of 2,020.85 points. The S&P declined by 3.1% in January, the biggest loss since January 2014.

Chinese stock markets closed higher on Tuesday. Hong Kong's Hang Seng is trading +0.19% at 24,531.60 points. China's Shanghai Composite closed at 3,205.55 points +2.47% almost erasing yesterday's losses. Market participants anticipate further monetary easing from the PBoC after data on manufacturing showed a contraction in January.

Japan's Nikkei posted losses on Tuesday, closing -1.27% with a final quote of 17,335.85 as the results of the Japanese bond auction were disappointing and weaker economic data from the U.S. and China raised concerns on global growth. Uncertainty over the fate of Greece in the Eurozone further added to risk aversion. A stronger Japanese Yen weighed on exporter shares. A rally in oil prices had a negative effect on airlines and the energy sector.