Asian stocks were set for slight gains at the open on Tuesday after markets in the region pared early gains in the last session amid U.S.-China trade jitters after Beijing threatened retaliation last week.

Futures tipped marginally higher opens for Japan and Australia. Nikkei futures traded in Chicago were higher by 0.17 percent compared to the benchmark’s Monday close. Elsewhere, Australian SPI futures were little changed, last up 0.05 percent at the end of the previous day.

U.S. stocks rose on Monday as investors shrugged off trade uncertainty that had dampened sentiment in markets in Asia and Europe overnight and focused instead on corporate earnings news.

Investors stateside had come into the earnings season with high hopes as FactSet had forecast year-over-year profits to grow by 20 percent in the second quarter. So far, second-quarter earnings have grown by 24 percent through Friday.

The Nasdaq Composite gained 0.61 percent to finish the session at 7,859.68, recording a five-day winning streak which was its longest since May. The Dow Jones Industrial Average edged up by 0.16 percent, or 39.60 points, to close at 25,502.1 and the S&P 500 was up 0.35 percent to 2,850.40.

That compared to slightly more downbeat sessions seen in Asia and Europe after China last week said it was preparing to impose duties, ranging from 5 percent to 25 percent, on around $60 billion in U.S. imports. Beijing said those tariffs would take effect if the U.S. went ahead with imposing more duties on Chinese goods.

Chinese state media claimed the country was being “rational” in its countermeasures, which came after U.S. President Donald Trump asked trade officials to consider increasing proposed tariffs on $200 billion in Chinese goods to 25 percent from an earlier announced 10 percent.

In Asia, both the Shanghai and Shenzhen Composite were in bear market territory, with the benchmark Shanghai share average closing down 1.26 percent on Monday. The pan-European Stoxx 600, meanwhile, slipped 0.13 percent.

Those trade tensions gave support to the dollar, which broadly firmed. The dollar index, which tracks the dollar against a basket of currencies, extended gains in the overnight session to last stand at 95.357.

Also of note, the British pound slid on concerns over Brexit. Britain’s international trade minister Liam Fox said there was a 60 percent chance of Britain leaving the European Union without a deal, AP said. The pound traded as low as $1.2920 before paring some losses to trade at $1.2941 at 6:57 a.m. HK/SIN.

On the earnings front, Asian corporates slated to report on Tuesday include Mitsubishi UFJ Financial Group, Kirin Holdings and HAECO.

Here’s the economic calendar for Tuesday (all times in HK/SIN):

  • 7:30 a.m.: Japan household spending
  • 12:30 p.m.: Reserve Bank of Australia interest rate decision

— CNBC’s Fred Imbert contributed to this report.