Asian stock markets mostly advanced on Tuesday, boosted by gains in automakers after the U.S. announced measures to soften auto tariffs. However, mainland Chinese stocks edged lower amid a lack of new stimulus from Beijing.
With Japanese markets closed for a holiday, regional trading volumes were light. Major U.S. indexes posted slight gains on Monday, with futures inching higher during Asian hours.
Investor sentiment improved after the Trump administration said it would ease some tariffs on foreign auto parts used in U.S.-made vehicles. According to The Wall Street Journal, automakers will be exempt from additional duties, such as those on steel and aluminum.
Hong Kong’s Hang Seng Index climbed 0.5%, driven by a 5% surge in NIO Inc (HK:9866) and a 2.5% rise in Geely Automobile (HK:0175). South Korea’s KOSPI gained 0.8%, with Hyundai Motor (KS:005380) up 1.7%. Futures tied to India’s Nifty 50 and Japan’s Nikkei 225 rose 0.3%, with the latter poised to rally once trading resumes. Australia’s S&P/ASX 200 advanced 0.9%, while Singapore’s Straits Times Index added 0.4%.
Attention now turns to the Bank of Japan’s policy meeting, with rates expected to remain unchanged despite persistent inflation.
Meanwhile, China’s Shanghai Composite dipped 0.1% and the CSI 300 fell 0.2%, despite easing U.S.-China trade tensions. U.S. Treasury Secretary Scott Bessent indicated ongoing communication with China, though Beijing denied recent talks. Chinese policymakers pledged to support businesses affected by tariffs but refrained from introducing fresh stimulus beyond March announcements. Investors await China's manufacturing data due Wednesday for further economic signals.


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