A man watches stock quotations on an electronic board outside a brokerage, in Tokyo.
Stephen Culp, a Reuters look at the day ahead in Asian markets.
Global market skittishness over whether contagion is imminent in the banking sector seems to be waning.
If European and U.S markets are on Monday a prologue to Asian markets on Tuesday, investors can look forward to a rebound.
On Monday, the Hang Seng plunged 2.7% to a three-month low and the Nikkei 225 dropped 1.4%, but the risk-off fog began to lift as the earth moved around to Europe.
European shares reversed an early sell-off to close up 1% as bank shares rallied and all three U.S. stock indexes ended higher, led by a 1.2% jump in the blue-chip Dow.
The safe-haven assets - gold and the greenback -- were both down about 0.5% at the closing bell.
The S&P Banking index ended up 0.6%, but the index has plunged 21.3% this month, even with Monday's advance.
A $30 billion lifeline to First Republic Bank was towed by the UBS buyout of Credit Suisse last week after financial heavyhitters in the U.S. threw a $30 billion lifeline to First Republic Bank.
The Federal Deposit Insurance Corporation agreed to buy deposits from the newly shuttered Signature Bank on Monday, and the subsidiary of New York Community Bancorp was set up to buy deposits and loans from the newly shuttered Signature Bank.
All of it seems to have calmed fears and brought stability to the market.
The Federal Reserve is due to convene for its two-day monetary policy meeting on Tuesday as central banks around the world juggle financial sector liquidity needs with their ongoing efforts to curb inflation while avoiding recession.
Market expectations regarding the Fed's next rate hike to be announced on Wednesday and whether it will raise interest rates at all are in constant flux.
Financial markets have priced in a 73.1% probability of a 25 basis point increase to the Fed funds target rate and a 26.9% probability of no hike at all, according to CME's FedWatch tool.
Just days after a 50 basis point policy hike, European Central Bank President Christine Lagarde said that the ECB has the tools to deal with financial market turbulence while fighting inflation.
Chinese President Xi Jinping and Russian President Vladimir Putin are going to engage in formal talks regarding Beijing's proposals for a war resolution.
The Federal Reserve will convene for its two-day monetary policy meeting on Tuesday.