CANBERA (dpa-AFX) - Asian stocks rose broadly on Tuesday in anticipation of a Federal Reserve rate cut when the U.S. central bank announces its monetary policy decision on Wednesday.
Fed officials will also release their quarterly update of economic and rate forecasts on Wednesday and Fed Chair Jerome Powell will hold his regular post-decision press conference, as concerns about a softening labor market take precedence over sticky inflation.
The focus was also on ongoing U.S.-China talks, with reports suggesting that Washington has reached a 'framework' deal with China on TikTok's U.S. operations.
Also, U.S. Treasury Secretary Scott Bessent stated that the Trump administration will hold off on new tariffs on Chinese goods related to Russian oil purchases, pending substantial tariff actions from European countries.
China's Shanghai Composite index finished marginally higher at 3,861.86 after a choppy session. Hong Kong's Hang Seng index ended little changed with a negative bias at 26,438.51, giving up early gains.
Japanese markets eked out modest gains to close at a record high for a fourth day running, led by gains in the chip sector.
The Nikkei average gained 0.30 percent to close at 44,902.07 while the broader Topix index settled 0.25 percent higher at 3,168.36.
Wafer maker Sumco jumped more than 9 percent while Tokyo Electron, Resonac Holdings and Disco Corp climbed 2-8 percent.
Seoul stocks rose sharply to set a new record high for the fifth consecutive session as blue-chip tech shares like Samsung Electronics and SK Hynix soared 4-5 percent on expectations for the South Korean government's policy road map aimed at fostering advanced industries. The Kospi average jumped 1.24 percent to 3,449.62.
Australian markets ended modestly higher as energy and mining stocks surged, more than offsetting losses in the healthcare sector.
The benchmark S&P/ASX200 rose 0.28 percent to 8,877.70, while the broader All Ordinaries index finished up 0.33 percent at 9,151.20.
Across the Tasman, New Zealand's benchmark S&P/NZX-50 index ended up 0.20 percent at 13,234.89 ahead of key central bank decisions due this week, including those in the U.S., Britain, Japan and Canada.
Gold scaled a record high in Asian trade, and the dollar was on the back foot, while WTI crude oil futures fell toward $63 per barrel, erasing earlier gains that stemmed from concerns over supply disruptions from Russia.
U.S. stocks rose overnight following positive comments from President Donald Trump about trade talks between top U.S. and Chinese officials in Europe.
In a post on Truth Social, Trump said that the talks have 'gone VERY WELL!' adding that a 'deal was also reached on the sale of Chinese-owned social media TikTok.
Trump also said that he will be speaking with Chinese President Xi Jinping on Friday and described the relationship as 'a very strong one.'
In another development, China's antitrust regulator said an initial investigation showed Nvidia violated antimonopoly law.
The tech-heavy Nasdaq Composite and the S&P 500 gained 0.9 percent and half a percent, respectively to reach new record closing highs while the Dow inched up 0.1 percent.
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