CANBERA (dpa-AFX) - Asian stocks turned in a mixed performance on Tuesday, with Japanese markets outperforming on tariff and earnings optimism.
A cautious undertone prevailed elsewhere across the region ahead of key U.S. inflation report due later in the day that might shape the Federal Reserve's interest-rate path.
The report may show a slight pickup in inflation as companies pass higher import taxes on a variety of items to consumers.
Gold edged up slightly, the dollar held gains and oil prices were modestly higher after U.S. President Donald Trump downplayed expectations for his upcoming meeting with Russian leader Vladimir Putin, saying it is a 'feel-out meeting' and he would confer with Ukrainian and European leaders after the sitdown.
China's Shanghai Composite index rose half a percent to 3,665.92 as the United States and China confirmed a 90-day extension of their trade truce, as expected. This keeps tariffs steady until November.
Shares of Chinese chipmakers surged on signs that China is seeking to strengthen its domestic semiconductor industry.
Bloomberg reported, citing sources that Beijing has urged domestic firms to avoid using Nvidia's H20 processors in sensitive projects, particularly for government or national security work, potentially boosting demand for local alternatives.
Hong Kong's Hang Seng index ended 0.25 percent higher at 24,969.68 ahead of first-half earnings results from prominent index constituents due this week.
Japanese markets rallied as concerns over tariff levels eased, boosting optimism over trade with the United States.
The Nikkei average jumped 2.15 percent to 42,718.17, the highest closing ever, as traders returned to their desks after a holiday on Monday. The broader Topix index closed up 1.39 percent at 3,066.37.
Tech stocks surged, with heavyweight SoftBank Group climbing nearly 7 percent to a record high following reports that the company has selected four banks to help it prepare for a U.S. listing of its payments app operator PayPay.
Advantest surged 6.3 percent, Lasertec soared 7.1 percent and Tokyo Electron added 1.1 percent.
Seoul stocks ended lower for a third straight session as investors waited for the outcome of consultations between the government and the ruling party on scrapping earlier plans to tighten capital gains tax rules. The Kospi average dropped 0.53 percent to 3,189.91, with energy, shipbuilding and entertainment shares pacing the declines.
Australian markets eked out modest gains as the Reserve Bank of Australia slashed its key interest rate for a third time this year and signaled future policy decisions will hinge on incoming data.
The benchmark S&P/ASX 200 rose 0.41 percent to 8,880.80 while the broader All Ordinaries index settled 0.36 percent higher at 9,150.30.
Across the Tasman, New Zealand's benchmark S&P/NZX-50 index tumbled 1.18 percent to close at 12,759.68, making its biggest single-day drop since late May.
U.S. stocks ended lower overnight as investors braced for the release of U.S. inflation data and the upcoming Trump-Putin meeting on Ukraine.
The Dow dropped half a percent while the tech-heavy Nasdaq Composite and the S&P 500 both eased around 0.3 percent.
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