Asia markets live: Stocks trade mixed

Asia-Pacific markets traded mixed Tuesday, following a massive rally on Wall Street after the U.S. and China agreed to a trade deal.

Hong Kong stocks fell sharply, with the Hang Seng Index declining 1.4% and the Hang Seng Tech Index plunging 2.43%. This was a reversal from the strong gains both indexes logged in the previous session. Meanwhile, mainland China’s CSI 300 index was flat.

Over in Japan, the benchmark Nikkei 225 surged 1.73%, while the broader Topix index advanced 1.24%.

In South Korea, the Kospi index moved up 0.25% while the small-cap Kosdaq added 1.14%.

Australia’s benchmark S&P/ASX 200 rose 0.56%.

Investors will be paying close attention to Indian markets, which posted its best one-day gain since February 2021 on Monday, following optimism over the India—Pakistan ceasefire. The benchmark Nifty 50 ended the day at 24,924.70, its highest level since Oct. 16, 2024, while the BSE Sensex index closed at 82,429.90, its highest since Oct. 3, 2024.

U.S. stock futures fell after all three key benchmarks hit their best day since April 9, as investors awaited the release of an inflation report.

Overnight stateside, stocks soared as investors’ fears of a recession in the U.S., sparked by a trade war with China, were abated after the two superpowers arrived at a deal.

The Dow Jones Industrial Average surged 1,160.72 points, or 2.81%, and closed at 42,410.10. The 30-stock index ended the session near its highs of the day, with buying enthusiasm remaining strong.

Meanwhile, the broad-based S&P 500 popped 3.26% to end at 5,844.19, giving it gains of over 20% since its April intraday low at the height of tariff pessimism. The benchmark’s year-to-date losses have now narrowed to just 0.6%.

The Nasdaq Composite added 4.35% and settled at 18,708.34, as the details of the trade deal sent technology stocks with exposure to China — like Tesla and Apple — higher.

— CNBC’s Brian Evans, Yun Li and Fred Imbert contributed to this report.