Most Asian markets experienced minor gains on Tuesday, primarily driven by the performance of mainland and Hong Kong equities following China’s decision to cut its benchmark loan prime rate. The Australian ASX 200 also noted a rise after the Reserve Bank’s recent 25 basis points rate cut, even as Wall Street futures softened on the backdrop of Moody’s US credit downgrade.

China’s CSI 300 and Shanghai Composite rose by about 0.3% and 0.2%, respectively, while the Hang Seng surged by 1%. The People’s Bank of China’s willingness to provide additional monetary support seemed to bolster market sentiment. However, a warning from China’s Commerce Ministry regarding potential trade issues limited these gains.

The ASX 200 climbed 0.5%, nearing three-month highs. Japan’s Nikkei and TOPIX also noted increases, signaling positive momentum as U.S.-Japan trade talks continue. Traders should remain watchful of how these market indicators ripple through the economy.