Asian Shares Mostly Higher; Chinese Markets Slip

(RTTNews) - Asian stocks rose broadly on Tuesday, with Japanese markets leading reginal gains after Prime Minister Shigeru Ishiba reportedly said his government is aiming to compile a supplementary budget for the current fiscal year in excess of last year's 13.1 trillion yen ($87.6 billion) to fund an economic support package.

Chinese and Hong Kong markets underperformed after weekend announcements from authorities about economic support failed to inspire confidence among investors.

Gold ticked lower and the dollar rose to a two-month high after Federal Reserve Governor Christopher Waller called for more caution on interest rate cuts.

Oil prices fell nearly 4 percent and were down for a third straight session after U.S. media reported that a planned retaliatory attack by Israel on Iran won't target nuclear or oil facilities, easing immediate concerns about supply disruptions.

China's Shanghai Composite index tumbled 2.53 percent to 3,201.29 as the size of Beijing's planned fiscal boost remained unclear.

Hong Kong's Hang Seng index plummeted 3.67 percent 20,318.79, dragged down by tech and real estate stocks.

Media outlet Caixin reported that China may raise an additional 6 trillion yuan ($850 billion) from ultra-long special government bonds over three years to help bolster a sagging economy.

Japanese shares rose notably, and the yen dipped from a 2-1/2 month high on optimism about the U.S. economic outlook and amid bets that the Bank of Japan will forgo raising interest rates again this year.

The Nikkei average climbed 0.77 percent to 39,910.55, extending gains for a fourth straight session. The broader Topix index settled 0.64 percent higher at 2,723.57 as traders returned from a national holiday.

Seoul stocks closed higher for a third day running, with tech shares leading the surge. Heavyweight Samsung Electronics edged up 0.3 percent and its chipmaking rival SK Hynix surged 2.9 percent. The Kospi average rose 0.39 percent to 2,633.45.

Australian markets hit a new record high, with banks and mining stocks leading the way. The benchmark S&P/ASX 200 rose 0.79 percent to 8,318.40 while the broader All Ordinaries index closed 0.81 percent higher at 8,598.60.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index gained 0.58 percent to close at 12,840.77.

U.S. stocks rallied to new records overnight on relief that interest rates are finally heading back down and that the economy is on a solid footing.

The Dow gained half a percent and the S&P 500 jumped 0.8 percent to reach new record closing highs while the tech-heavy Nasdaq Composite advanced 0.9 percent.