Asian stocks advanced on Tuesday, with China outperforming regional markets, as investors kept an eye on bond yields and the falling Chinese yuan.
In Japan, the Nikkei 225 regained 113.49 points, or 0.5%, to 22,510.48, recovering slightly after the index closed down by more than 300 points on Monday. The iron and steel sector led the climb on Tuesday, rising 2.4%, as most sectors recorded gains, with automakers also strengthening as the recent rise in the yen faded.
In Hong Kong, the Hang Seng galloped 406.45 points, or 1.4%, to 28,662.57, as sharp gains in the materials, property and construction, and financials sectors lifted the index.
In Korea, steelmaker Posco rose 2.5% despite missing earnings estimates on Monday while shipbuilders tumbled. Samsung Heavy Industries fell 2.4% and Hyundai Heavy Industries dropped 1.3% after both reported operating losses.
Down Under, stocks hiked as the materials sub-index led gains for the day.
Also of note was Monday's rise in U.S. Treasury yields, which tracked volatility seen in the Japanese government bond market overnight. The yield on the 10-year U.S. Treasury note last stood at 2.96% after the yield on the 10-year Japanese note climbed to its highest level since February on Monday.
The moves came after media reports last week that the Bank of Japan is holding preliminary discussions on potentially adjusting its policy, with a focus on ways to make its stimulus program more sustainable.
Ahead, meetings by the Bank of Japan and the Federal Reserve next week are expected to be closely watched by markets for more clues on policy.
CHINA
In Shanghai, the CSI 300 moved ahead 55.96 points, or 1.6%, to 3,581.71
Those gains came after China's State Council on Monday said it would engage in more "vigorous" fiscal policy as the economy cools.
Meanwhile, the yuan extended losses, dropping as much as 0.6% in offshore trading earlier. The on-shore yuan traded at 6.8040 to the U.S. dollar. The offshore yuan traded at 6.8257 — around 0.4% below its last close after earlier touching its lowest level in more than a year.
In individual movers, shares of Changsheng Biotechnology plunged 10% with Tuesday's declines coming on the back of six consecutive sessions of falls. The company is currently embroiled in a vaccine standards scandal in China.
In other markets
In Singapore, the Straits Times Index deleted 1.06 points to 3,292.65
In Taiwan, the Taiex index advanced 48.5 points, or 0.4%, to 10,995.39
In Korea, the Kospi index restored 10.89 points, or 0.5%, to 2,280.20
In New Zealand, the NZX 50 gained 28.76 points, or 0.3%, to 8,901.32
In Australia, the ASX 200 recouped 38.29 points, or 0.6%, to 6,265.84
