• The Dow Jones Industrial Average .DJI rose 259.29 points, or 1.01 percent, to 26,049.64, the S&P 500 .SPX gained 22.05 points, or 0.77 percent, to 2,896.74 and the Nasdaq Composite .IXIC added 71.92 points, or 0.91 percent, to 8,017.90.

A broad-based rally pushed the S&P 500 and the Nasdaq to record-high closes for the second straight session on Monday as a trade agreement reached between the United States and Mexico buoyed investor sentiment.

• Technology stocks led the Nasdaq above the 8,000 mark for the first time and the sector provided the biggest boost to the S&P 500.

A senior U.S. trade official announced a deal with Mexico to replace the North American Trade Agreement and said talks with Canada were expected to begin immediately.

• The upbeat trade outlook was further boosted by news that Washington was pressuring the European Union to accelerate tariff talks.

Disputes between the United States and its trading partners have been a drag on investor sentiment for much of the year despite solid economic fundamentals and two robust quarters of corporate earnings.

The Nikkei 225 traded in positive territory in early hours trade, up by 0.75 percent, with the country's shipping sector being among the top gainers at 2.78 percent. South Korea's Kospi was in positive territory too as it traded up by 0.43 percent, with industry heavyweight Samsung Electronics rising 0.86 percent.