Investing.com– Most Asian stocks rose on Tuesday, tracking gains on Wall Street amid increasing expectations for a September interest rate cut, while Chinese markets lagged on concerns over a cooling economy and headwinds from U.S. politics.
Regional markets took positive cues from a strong finish on Wall Street, after dovish-leaning comments from Federal Reserve Chair Jerome Powell showed the central bank had more confidence that inflation was easing.
Increased speculation over a Donald Trump presidency also supported stock markets, on hopes that such a scenario will result in an easier regulatory environment.
U.S. stock index futures rose in Asian trade.Â
Chinese stocks lag on Trump fears, weak GDPÂ
China’s and indexes moved in a flat-to-low range, while Hong Kong’s index slid 1.5%.Â
Speculation over a second term for Trump dented Chinese stocks, given that the former president has maintained a strong rhetoric against China. Trump had imposed steep tariffs on China during his term, sparking a prolonged trade war between Washington and Beijing in the late-2010s.Â
Trump was seen gaining an edge over President Joe Biden in the 2024 presidential race, especially after a failed assassination attempt on Trump seemingly boosted the former president’s popularity.Â
Trump on Monday was officially nominated as the Republican presidential candidate, and picked Ohio Senator J.D. Vance as his running mate.Â
Chinese stocks were already reeling from fears of a renewed trade war with the west, after the European Union joined the U.S. in imposing steep import tariffs on key industries.
Underwhelming second-quarter data, released on Monday, also further dented sentiment towards China.
Focus is now on the ongoing Third Plenum of the Chinese Communist Party, amid growing pressure on Beijing to release more stimulus.Â
Broader Asian markets mostly advanced on Tuesday, with South Korea’s adding 0.1%.
Japan’s and were the best performers for the day, rising 0.5% and 0.8%, respectively, as they also caught up to their peers after a holiday on Monday.
Futures for India’s index pointed to a positive open, after the index and the continued to notch record highs on optimism over the Indian economy.Â
Australian stocks stall below record highs as Rio Tinto weighsÂ
Australia’s fell 0.2% from record highs, weighed chiefly by losses in heavyweight miner Rio Tinto Ltd (ASX:).Â
Rio Tinto fell 2.3% after its second- quarter iron ore shipments missed estimates due to disruptions stemming from a train derailment.
While shipments still rose despite slowing demand in China, the firm’s outlook was somewhat clouded by increased uncertainty over the Chinese economy.Â
Weakness in China also bodes poorly for other Australian commodity stocks, given that China is the country’s biggest export destination.Â
Rio’s peer BHP Group Ltd (ASX:) fell 1.7%. BHP is also set to report its quarterly production figures this week.