Asian stocks advance after rebound on Wall Street

Synopsis

India is discussing a US trade deal structured in three tranches and expects to reach an interim agreement before July, when President Donald Trump’s reciprocal tariffs are set to kick in, according to officials in New Delhi familiar with the matter.

Asian shares rose for the first time in four days, mirroring gains in the US that placed the S&P 500 index on the brink of a bull market.

A regional stock gauge gained 0.4% with advances in Australia, Japan and South Korea after the S&P 500 index climbed for a sixth straight day. Treasuries were steady at the open in Asia after whipsawing on Monday with the downgrading of US debt. The dollar edged higher along with US equity-index futures. Gold dipped 0.2% after gaining in the prior session.

Stocks in Europe and the US shrugged off the downgrade of US credit ratings after Treasury Secretary Scott Bessent downplayed concerns, saying the government is determined to lower spending and boost the economy. Investors in Asia are also staying focused on the outcome of US trade negotiations with India and Japan after talks with China on lowering tariffs boosted optimism.

“The search for fresh market catalysts begins,” said Chris Larkin at E*Trade from Morgan Stanley. “The S&P 500 ended last week up for the year, and just a little more than 3% below its all-time high. Whether it closes that gap in the near future is one thing, sustaining a rally past it is another.”

Meanwhile, China’s government accused the Trump administration of undermining recent trade talks in Geneva with its warning that using Huawei Technologies Co.’s artificial-intelligence chips “anywhere in the world” would violate US export controls. The Asian nation’s Commerce Ministry demanded in the statement that the US “correct its mistakes.”

India is discussing a US trade deal structured in three tranches and expects to reach an interim agreement before July, when President Donald Trump’s reciprocal tariffs are set to kick in, according to officials in New Delhi familiar with the matter.

In Australia, investors will focus on comments from the central bank later Tuesday on the roadmap for the economy as the Reserve Bank of Australia meets to decide on interest rates. Economists and money markets expect the RBA to announce a quarter percentage-point cut to bring its cash rate a two-year low of 3.85%.

Still, they reckon Governor Michele Bullock may be reluctant to suggest further easing to come when she appears before journalists later Tuesday.

In corporate news, Contemporary Amperex Technology Co. Ltd. will start trading in Hong Kong Tuesday after the Chinese battery giant wrapped up the world’s biggest listing this year, raising HK$35.7 billion ($4.6 billion) despite being blacklisted by the Pentagon and grinding through geopolitical storms.

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