Asia stocks climb: Japan, Australia hit record highs; RBA cuts rates as expected

Updates to reflect RBA decision

Investing.com-- Most Asian stock markets advanced on Tuesday, with Japan’s Nikkei hitting a record high on optimism over the U.S.-China tariff truce extension, while shares in Sydney also set a fresh peak after the Reserve Bank of Australia reduced rates as anticipated.

Wall Street ended modestly lower on Monday, but major benchmark indices remain supported near record highs amid Federal Reserve rate cut hopes. 

U.S. stock index futures were largely unchanged in Asian trading on Tuesday.

RBA cuts rates by 25bps; stocks at record

The Reserve Bank of Australia lowered its interest rates by 25 basis points to 3.60% on Tuesday, in a move widely anticipated by markets.

Tuesday’s move marks the RBA’s third cut this year, following its surprise decision to keep rates unchanged in July.

After the hold, bets for a cut had strengthened amid weak inflation prints and signs of a cooling labour market.

The RBA said easing inflation is likely to prompt further rate cuts.

Australia’s S&P/ASX 200 index edged 0.3% higher to a fresh record high of 8,870.10 points.

Nikkei hits record high on US-China tariff truce optimism

The U.S. and China extended their tariff truce on Monday for another 90 days, averting sharp duties that could have disrupted trade. 

The agreement preserves current 30% U.S. and 10% Chinese tariffs and buys time for further negotiations, offering a boost to investor sentiment across the region.

In Japan, the Nikkei 225 climbed to a fresh record, surging as much as 2.8% to reach 42,992.55. The broader TOPIX index jumpd 1.8%.

Gains were led by strong performances in technology stocks, tracking recent record peaks on the tech-heavy Nasdaq Composite index.

China’s Shanghai Composite index gained 0.4%, while the Shanghai Shenzhen CSI 300 rose 0.5%. 

Hong Kong’s Hang Seng index edged 0.1% lower on Tuesday.

South Korea’s KOSPI index advanced 0.7%, while features tied to India’s Nifty 50 rose 0.3%.

Singapore’s Straits Times Index edged 0.2% lower despite a strong second-quarter GDP print. The country also hiked its 2025 GDP forecast.

Elsewhere, the Philippines’ PSEi Composite gained 0.6%, while Indonesia’s Jakarta Stock Exchange Composite Index jumped 0.8%.