BEIJING (dpa-AFX) - Asian stocks advanced on Tuesday as geopolitical tensions eased and tech stocks rebounded on dip buying.
Risk appetite improved, the dollar weakened slightly and oil prices came off recent highs after Israel and Iran halted attacks on each other following a warning from U.S. President Donald Trump.
China's Shanghai Composite index climbed 1.28 percent to 4,010.03 despite heightened U.S.-China tensions after the Pentagon accused some of Chinese biggest companies, including Alibaba, Baidu and BYD of supporting the Chinese military. Hong Kong's Hang Seng index slipped 0.37 percent to 24,565.90.
Japanese markets ended sharply higher as chip-related stocks recovered from heavy losses in the previous session.
The yen held near a one-month low against the dollar after the Nikkei reported that the Bank of Japan may raise its short-term policy rate and consider halting bond tapering from April 2027 at its upcoming monetary policy meeting on June 15-16.
The government is ready to act decisively against excessive yen declines while remaining vigilant to rising bond yields that could hurt growth, Japan's Finance Minister Satsuki Katayama said in a news conference earlier in the day.
The Nikkei average jumped 2.17 percent to 65,416.63 while the broader Topix index settled 1.14 percent higher at 3,896.11. Advantest surged 4.3 percent and Tokyo Electron shares soared 8.9 percent.
Seoul stocks experienced a sharp rebound after leading a rout across Asia on Monday on woes over AI profitability and Fed rate hike expectations.
Investors cheered that that showed South Korea's economy expanded at a faster pace in the first quarterly than initially reported.
The Kospi index surged 8.18 percent to 8,096.93, marking the highest-ever daily increase after plunging more than 8 percent in the previous session. Among the top gainers, Samsung Electronics, SK Square and SK Hynix soared 9-16 percent.
Australian markets ended slightly lower after the release of somewhat disappointing consumer confidence and business sentiment readings.
The benchmark S&P/ASX 200 slipped 0.24 percent to 8,604.20, extending losses for a third consecutive session. The broader All Ordinaries index closed 0.35 percent lower at 8,824.80.
Across the Tasman, New Zealand's benchmark S&P/NZX-50 index rallied 1.27 percent to 13,204.08, reaching its highest level since May 29.
U.S. stocks closed mostly higher overnight as chipmakers and artificial intelligence-linked names attracted buying after Friday's selloff.
Sentiment was also helped by easing geopolitical tensions after President Donald Trump claimed Israel and Iran are 'looking to do an immediate ceasefire' and that the final negotiations on a peace deal aimed at achieving a complete solution to the West Asia conflict are currently underway.
However, Trump cautioned that 'ignorance of stupidity' could derail efforts to reach a final agreement.
Iran's Tasnim agency reported that Tehran is prepared for a long-term war with Israel. Separately, Iranian Foreign Ministry spokesperson Esmail Baghaei held the U.S. responsible for recent ceasefire breaches.
The tech-heavy Nasdaq Composite gained 0.9 percent and the S&P 500 added 0.3 percent while the narrower Dow slid 0.2 percent.
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