Most Asian stocks experienced gains on Tuesday, continuing recent advancements due to increasing expectations that U.S. President Donald Trump’s tariff agenda would be less severe than anticipated. However, Chinese markets were exceptions, particularly in Hong Kong, where profit-taking in major technology stocks following a remarkable year-to-date rally weighed heavily on the Hang Seng. Broader Asian markets benefited from Wall Street’s positive performance during Monday’s session, as reports indicated that Trump’s April 2 tariffs would be less harsh than initially feared. Despite this, Wall Street futures dipped slightly in Asian trade as investors remained cautious about the impact of Trump’s tariffs, considering several Asian countries would be affected by his reciprocal tariffs. Japan’s Nikkei index performed strongly, rising 0.7% supported by heavyweight export-oriented stocks following some yen weakness. Domestically-focused Japanese stocks also advanced, with the TOPIX index briefly reaching its highest level since July 2024. Sentiment towards Japan softened this week after weaker-than-expected data, but significant wage increases and rising private consumption are expected to support activity in 2025, potentially prompting more interest rate hikes by the Bank of Japan. The minutes of the BOJ’s January meeting, where the central bank raised rates by 25 basis points, revealed discussions about further hikes. Other Asian markets also advanced, with Australia’s index gaining 0.4%, while Singapore’s surged 0.9% to a record high. South Korea’s index lagged, falling 0.3% despite strong gains in Hyundai Motor after it announced plans to invest $21 billion in the U.S. India’s index pointed to a mildly positive open as it rebounded from nine-month lows hit at the beginning of March. The Nifty reached a 1-½ month high on Monday. In contrast, Chinese stocks fell, with the Hang Seng dropping 2% due to losses in major tech stocks after a stellar rally driven by optimism over more stimulus and China’s artificial intelligence prospects in 2025. Xiaomi Corp sank 5% and significantly impacted the Hang Seng after raising $5.5 billion in an upsized Hong Kong share sale. The stock had recently hit a record high due to optimism about its future in the competitive electric vehicle market. — news from Investing.com