Asian Shares Mostly Higher In Cautious Trade

(RTTNews) - Asian stocks ended mostly higher on Tuesday after China and Australia cut interest rates as expected.

Investors stayed focused on the outcome of U.S. trade negotiations with India and Japan, following a 90-day pause on reciprocal tariffs between the U.S. and China.

Meanwhile, after the United States warned companies against using Huawei's Ascend chips, China accused the Trump administration of undermining recent trade truce talks in Geneva. China demanded the U.S. to "correct its mistakes."

The U.S. dollar pulled back on concerns about rising debt and tariff uncertainty and gold traded weak around $3,220 per ounce levels, while oil prices were mixed in Asian trade.

China's Shanghai Composite index rose 0.38 percent to 3,380.48 after the People's Bank of China cut benchmark lending rates for the first time since October.

The People's Bank of China slashed its one-year loan prime rate (LPR), a key reference for household and business lending, to 3.0 percent from 3.1 percent, while the five-year LPR, typically used for mortgages, was lowered by 10 basis points to 3.5 percent.

Hong Kong's Hang Seng index rallied 1.49 percent to 23,681.48 as tech stocks like Alibaba and Baidu gained surged on Beijing's growth push. Japanese markets ended on a flat note, giving up early gains supported by a weaker yen.

The Nikkei average and the broader Topix index both finished marginally higher at 37,529.49 and 2,738.83, respectively ahead of potential currency talks this week between the U.S. and Japan.

Export-linked Sony surged 4.6 percent, Nvidia supplier Advantest climbed 3 percent and peer Tokyo Electron added 1.2 percent.

Seoul stocks ended lower for a second day running, with the Kospi average finishing marginally lower at 2,601.80, dragged down by automakers and battery stocks.

Semiconductor and energy shares advanced, helping limit overall losses in the broader market.

Australian stocks edged higher as the Reserve Bank of Australia cut rates again to a two-year low, as expected. The benchmark S&P/ASX 200 gained 0.58 percent to close at 8,343.30, led by tech and real estate stocks. The broader All Ordinaries index settled 0.57 percent higher at 8,573.40.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index edged up by 0.12 percent to 12,644.23.

U.S. stocks ended modestly higher overnight, after having slumped early in the session following Moody's downgrade of the U.S. credit rating.

The S&P 500 finished marginally higher to extend its winning streak for a sixth straight session as Treasury yields came off their highs.

Earlier, longer-dated bond yields touched 5 percent on worries about the cost of President Trump's policies and the health of the economy.

U.S. Treasury Secretary Scott Bessent downplayed debt concerns and said the government is determined to lower spending and boost the economy.

The Dow rose 0.3 percent and the tech-heavy Nasdaq Composite ended flat with a positive bias.