Investing.com-- Most Asian stocks advanced on Tuesday with Chinese technology stocks rallying further ahead of key quarterly earnings from the sector.
Australian stocks traded lower, showing little reaction to an as expected interest rate cut by the Reserve Bank of Australia. The central bank struck a hawkish stance on the prospect of further easing.
Regional markets took few cues from Wall Street, given that U.S. markets were closed on Monday. Wall Street futures rose slightly in Asian trade, amid persistent uncertainty over President Donald Trump’s trade tariffs, and high-for-longer interest rates.
China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes moved little on Tuesday. But Hong Kong’s Hang Seng index was a standout performer, surging 2% on sustained strength in technology stocks.
Some of China’s biggest technology firms- such as Baidu (NASDAQ: BIDU ) Inc (HK: 9888 ) and Alibaba Group Holding Ltd (HK: 9988 )- are set to report quarterly earnings this week. Baidu rose 0.4%, while Alibaba (NYSE: BABA ) rallied nearly 5%.
Chinese tech stocks have been on a tear since late-January, as the release of DeepSeek sparked increased confidence in the country’s artificial intelligence capabilities.
This has translated into strong gains for the Hang Seng, which surged to an over four-month high on Tuesday.
Broader Chinese stocks also benefited from exposure to the AI rally, with Goldman Sachs analysts forecasting a faster AI adoption rate in the country, as well as improved economic growth.
Australia’s ASX 200 fell 0.5%, further extending a decline from record highs as investors locked in recent profits.
The RBA cut rates by 25 basis points as expected, but warned that future easing remained uncertain amid strength in Australia’s labor market and sticky inflation.
Expectations for a rate cut were fueled by growing signs of an economic slowdown in Australia, as the country grapples with weak Chinese demand for exports and sluggish consumer spending.
The RBA forecast a mild pick-up in growth this year, but also warned that inflation will remain sticky.
Major bank stocks were the biggest weight on the ASX, with Commonwealth Bank Of Australia (ASX: CBA ) falling 1.3% on the prospect of lower lending rates.
Mining giant BHP Group Ltd (ASX: BHP ) rose 0.5% even as its profit for the six months to December slid to a six-year low, amid weak overseas commodity demand. But the miner flagged an ongoing recovery in iron ore and copper demand, especially thanks to lower interest rates across the globe.
Most other Asian stocks advanced on Tuesday. Japan’s Nikkei 225 and TOPIX indexes rose about 0.6% each.
South Korea’s KOSPI added 0.4%, while Singapore’s Straits Times index rose 0.1%.
Futures for India’s Nifty 50 index pointed to a negative open, as sentiment towards Indian markets remained strained amid doubts over slowing growth and U.S. trade tariffs.