Asian Shares End Choppy Session Mixed

(RTTNews) - Asian stocks fluctuated before ending mixed on Tuesday despite a blistering rally on Wall Street overnight.

Investors weighed the case for a September rate cut after comments by Fed Chair Jerome Powell that the three inflation readings over the second quarter of this year showed "more progress".

With the odds for a Trump presidency increasing, markets also grappled with the concept of the "Trump Trade," which implies deregulation, tax cuts, and increased fiscal spending.

The dollar rebounded after a recent streak of losses and gold nudged higher toward record highs while oil extended losses on worries about Chinese demand.

China's Shanghai Composite index finished marginally higher at 2,976.30 and Hong Kong's Hang Seng index fell 1.60 percent to 17,727.98 due to concerns over a further escalation in geopolitical conflicts if Donald Trump wins the White House again in November.

Japanese markets ended slightly higher, with the Nikkei average rising 0.20 percent to 41,275.08 as traders returned to their desks after a holiday the previous day. The broader Topix index settled 0.34 percent higher at 2,904.50.

A weak yen lifted some export-oriented shares. Defense-related shares also surged, with Mitsubishi Heavy Industries and Kawasaki Heavy Industries climbing 5 percent and 6.2 percent, respectively.

Electronic components maker TDK jumped 5.4 percent while Uniqlo parent Fast Retailing fell 1.3 percent.

Seoul stocks posted modest gains, with the Kospi average rising 0.18 percent to 2,866.09.

Australian markets ended lower as investors awaited June jobs data for directional cues.

The benchmark S&P/ASX 200 slipped 0.23 percent to 7,999.30, snapping a three-day winning streak. The broader All Ordinaries index closed down 0.23 percent at 8,243.30.

Banks edged up slightly to extend gains for a sixth day running while mining stocks suffered losses after Rio Tinto reported second-quarter iron ore shipments below analyst estimates.

Rio Tinto closed 2.5 percent lower after hitting its weakest level since March 18 earlier. Peer BHP gave up 1.4 percent.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index rose 0.51 percent to 12,184.49 ahead of inflation data for the second quarter due on Wednesday that might influence the central bank's monetary policy stance.

U.S. stocks closed on a firm note overnight, with two of the three major indices moving on to record fresh highs, on optimism about interest-rate cuts by the Fed and rising prospects of former President Donald Trump winning the upcoming presidential elections.

The Dow gained half a percent, the S&P 500 edged up 0.3 percent and the tech-heavy Nasdaq Composite added 0.4 percent despite data showing a continued decline in New York state manufacturing activity.