Australian shares are set to open higher Tuesday after US benchmark equity indexes shaved off some of their losses in what is shaping up to be global markets' most turbulent period since the COVID-19 pandemic.

Overnight on Wall Street, the S&P 500 shed 0.2% and the Dow Jones Industrial Average fell 0.9%, while the Nasdaq Composite was little changed.

US President Donald Trump threatened to impose a further 50% tariff on China if the country goes ahead with its retaliatory levies.

In corporate news, Star Entertainment Group (ASX:SGR) signed a binding term sheet with New York Stock Exchange-listed Bally's in relation to a multi-tranche convertible note and subordinated debt instrument valued at AU$300 million, enabling the struggling Australian casino operator to meet its funding needs, according to a Monday Australian bourse filing.

Elsewhere, the Commonwealth Bank of Australia (ASX:CBA) and Westpac Banking (ASX:WBC, NZE:WBC) disclosed plans to introduce numberless, physical credit cards over the next five years as part of efforts to tackle fraud, per a Monday statement.

Australia's benchmark index logged its biggest one-day loss since the COVID-19 pandemic after plunging 4.2%, or 324.50 points, to close at 7,343.30 on Monday.