Asian shares rebounded sharply on Tuesday, lifted by a relief rally on Wall Street and a sharp decline in Treasury yields as weaker-than-expected US manufacturing data allayed fears about aggressive interest rate hikes from the US Federal Reserve. The Nikkei 225 and KOSPI indexes jumped 2.96% and 2.5%, respectively, while S&P/ASX 200 Index rallied 3.75% after the Reserve Bank of Australia surprised markets with a smaller 25 basis point rate hike. The BSE Sensex Index was also up at least 2% in afternoon trade. Meanwhile, markets in mainland China and Hong Kong were closed for their respective holidays.