Most Asian emerging markets rose Tuesday after the previous day's heavy losses while the dollar dipped against most peers but traders remained on edge over Donald Trump's plans for global trade agreements.

While shares in developed economies have rallied and safe-haven sovereign debt prices have fallen, many trading floors in Asia have taken a hit recently over worries Trump will throw up tariffs to the world's biggest economy.

His plans for huge spending and tax cuts at home have also fanned expectations the Federal Reserve will hike interest rates more sharply than initially planned, sending the dollar soaring and fuelling an exodus from emerging markets.

However, after a two-day retreat on most regional bourses, there was a tentative recovery with Manila up 0.3 percent, Jakarta 0.5 percent higher and Bangkok added 0.2 percent.

There were also gains of 0.7 percent in Singapore and a 0.5 percent rise in Wellington while Hong Kong gained 0.5 percent.

However, Tokyo was marginally lower, having surged more than eight percent to a nine-month high since Thursday on the back of a rally in the dollar against the yen.

Shanghai was off 0.1 percent, while Sydney and Seoul each shed 0.4 percent.

In early European trade London rose 0.5 percent, Paris put on 0.4 percent and Frankfurt added 0.3 percent.

"Risks are elevated, and we are expecting further increases in volatility as markets attempt to second-guess the policies that might eventually come out from the US,” Michael McCarthy, chief market strategist at CMC Markets in Sydney, told Bloomberg News.

- Fed in focus -

The dollar dipped back from a five-month high of 108.54 yen, but traders suggested it could test the 110 yen mark as soon as this week, with eyes on Fed chief Janet Yellen's congressional testimony later this week.

The central bank is widely expected to hike borrowing costs next month but her remarks Thursday will be pored over for clues about its plans for next year.

"By all accounts, there appears no stopping the US dollar's recent ascent based on the current interest rate trajectory," Stephen Innes, senior trader at OANDA, said in a note.

And Takuya Kanda, a senior researcher at Gaitame.com Research Institute said: “The dollar is currently rallying on expectations only. But the policies Trump has called for are all dollar-positive. After pausing around 107 to 108, the dollar will resume its uptrend toward 110 yen by year-end.”

The dollar sank against higher-yielding currencies, with the South Korean won, Australian dollar, Thai baht and New Zealand dollar all well up. The euro rose after hitting an 11-month low of $1.0709 on Monday.

And Mexico's peso was two percent higher, having hit record lows this week on worries about Trump's warning he will tear up a trade deal with the country and send back millions of migrants.

However, China weakened its yuan fix to the dollar to an eight-year low.

Bets on a sharper rise in US rates have sent bond yields soaring in the US and Australia as traders shift out of them because sovereign debt usually offers lower rates of interest. 

Prices and yields move inversely from each other. Australian debt yields are at their highest since April, according to Bloomberg News.

Oil prices surged on renewed hopes that OPEC can reach a deal to cap output before it holds its twice-yearly meeting this month. 

The commodity has come under pressure in recent weeks, though, on worries the OPEC deal would fall apart and on a stronger dollar, which makes it more expensive for holders of other currencies.

- Key figures around 0800 GMT -

Tokyo - Nikkei 225: DOWN 0.03 percent at 17,668.15 (close)

Hong Kong - Hang Seng: UP 0.5 percent at 22,323.91 (close)

Shanghai - Composite: DOWN 0.1 percent at 3,206.99 (close)

London - FTSE 100: UP 0.5 percent at 6,787.26

Euro/dollar: UP to $1.0775 from $1.0738 Friday

Dollar/yen: DOWN at 108.15 yen from 108.48 yen 

Pound/dollar: DOWN at $1.2484 from $1.2497

Oil - West Texas Intermediate: UP 87 cents at $44.19 per barrel

Oil - Brent North Sea: UP 68 cents at $45.11

New York - Dow: UP 0.1 percent at 18,868.55 (close)

Source: AFP