Although there has never been definitive evidence that Chinese economic data is exaggerated, the widely-held theory says that China's National Bureau of Statistics will overstate growth in a stability-minded effort to hide the truth about a slowing economy.
A firmer US dollar also weighed on oil, making greenback-denominated contracts more expensive for holders of other currencies. Although trading was quiet after Thanksgiving Day in the United States.
The majority of companies have been beating Wall Street earnings estimates, but the S&P 500 companies are expected to see an earnings decline of nearly 4 percent and just over half of the companies reporting so far have been missing revenue forecasts.
Gold extended gains on Tuesday to climb to its highest since October, boosted by safe-haven demand triggered by a continued slump in oil prices and weakness in some equities markets.
The initial reaction on oil markets was largely muted after data on Monday showed the Chinese economy eased to 7.7 percent between October and December, from 7.8 percent in the previous three months and slightly ahead of market expectations for growth of 7.6 percent.
Upbeat Chinese economic data and lower oil prices also boosted global markets, helping Indian stocks extend gains.
Benchmark oil prices may fall this week, reacting to softer economic data expected from China, according to CNBC's weekly survey of oil market sentiment.
US stocks in early trading on Tuesday after Chinese economic data drew investors into an equities market that has been through six weeks of sharp declines.
In an interview to CNBC-TV18, Sandeep J Shah of Sampriti Capital said that the upside may be maybe 6,200-6,400 but it will not ride away at that level. He is also concerned on the foreign institutional investors (FII) inflow to India.