Germany's blue-chip DAX stock index jumped above 20,000 points for the first time and Paris rebounded even as France braced for new political turmoil.

The euro also bounced back against the dollar, which was pressured by expectations that the Federal Reserve will once more cut US interest rates this month.

Opposition lawmakers in France prepared to back a no-confidence motion this week that risks toppling the government of Prime Minister Michel Barnier after just three months in office.

The standoff between Barnier and the opposition is over France's 2025 budget, which has caused jitters on financial markets.

Monday saw more record highs for Wall Street indices amid strong US holiday sales and as traders assessed Washington's decision to impose fresh tech export restrictions on Beijing.

"December is Santa rally territory, and so far it's got off to a good start," noted Kathleen Brooks, research director at traders XTB.

"For now, the markets are ignoring the geopolitical risks bubbling around the world."

The positive performance on equity markets followed a run-up Monday as manufacturing activity data suggested China's economic struggles may be coming to an end.

There was also well-received US manufacturing numbers.

Bloomberg said Tuesday that China's top leaders, including President Xi Jinping, would hold a two-day economic work conference next week to outline their targets and stimulus plans for next year.

Hong Kong and Shanghai stock markets closed higher despite Washington announcing new export restrictions taking aim at Beijing's ability to make advanced semiconductors.

The moves step up existing US efforts to tighten curbs on exports of state-of-the-art AI chips to China.

Beijing hit back, saying the United States "abuses export control measures" and has "hindered normal economic and trade exchanges".

Across Asian trading, there were healthy gains Tuesday in Tokyo, Sydney, Seoul, Singapore, Mumbai, Bangkok and Jakarta.

Wellington and Manila retreated.

Investors remain wary about the prospect of a second term for Donald Trump as US president, particularly after his pledge to hit China, Canada and Mexico with heavy tariffs.

- Key figures around 1115 GMT -

London - FTSE 100: UP 0.6 percent at 8,364.30 points

Paris - CAC 40: UP 0.2 percent at 7,250.85

Frankfurt - DAX: UP 0.1 percent at 19,954.14

Tokyo - Nikkei 225: UP 1.9 percent at 39,248.86 (close)

Hong Kong - Hang Seng Index: UP 1.0 percent at 19,746.32 (close)

Shanghai - Composite: UP 0.4 percent at 3,378.81 (close)

New York - Dow: DOWN 0.3 percent at 44,782.00 (close)

Euro/dollar: UP at $1.0522 from $1.0499 on Monday

Pound/dollar: UP at $1.2766 from $1.2654

Dollar/yen: UP at 149.77 yen from 149.54 yen

Euro/pound: UP at 83.09 from 82.97 pence

Brent North Sea Crude: UP 0.9 percent at $72.44 per barrel

West Texas Intermediate: UP 0.9 percent at $68.73 per barrel

dan-bcp/ajb/kjm

INDEX CORP.