Asia Higher Ahead of Trade Talks

Stocks in the Asia Pacific region mostly advanced on Tuesday as investors awaited developments from U.S.-China trade talks this week in Shanghai. The Bank of Japan also opted to keep monetary policy steady.

The Nikkei 225 in Japan regained 92.51 points, or 0.2%, to 21,709.31, with shares of Fanuc jumping 3.1%.

In Hong Kong, the Hang Seng Index recovered 40.09 points, or 0.1%, to 28,146.50, following yesterday’s press conference, when Beijing reiterated its firm support for the city’s embattled leader Carrie Lam amid protests over an extradition bill. It also suggested there will not be a change in its management of Hong Kong in the near future.

The Bank of Japan kept monetary policy steady on Tuesday but said that it "will not hesitate to take additional easing measures" if the economy loses momentum toward achieving the target inflation rate of 2%.

The Japanese central bank also said it intends to maintain the "current extremely low levels" of short- and long-term interest rates for an extended period of time, at least through around spring 2020. The Japanese yen last traded at 108.64 against the dollar after seeing an earlier low of 108.94.

Government data released earlier on Tuesday showed Japan’s factory output falling more than expected in June.

Korean issues reversed field and went higher, following a slump on Monday, with shares of index heavyweight Samsung Electronics gaining nearly 1%.

Australian stocks hit an all-time high, eclipsing the previous record set in November 2007.

The Australian dollar changed hands at $0.6900 against the U.S. dollar following declines from levels above $0.702 seen last week.

CHINA

In Shanghai, the CSI 300 recouped 16.05 points, or 0.4%, to 3,870.32.

Meanwhile, U.S.-China trade negotiations are set to happen in Shanghai this week as the two economic powerhouses seek to reach a deal to end a protracted trade dispute.

Chinese tech giant Tencent’s shares rose 0.75%, with the company announcing Monday that it would cooperate with Qualcomm on gaming devices and 5G.

In other markets

In Korea, the Kospi index re-strengthened 9.2 points, or 0.5%, to 2,038.68

In Singapore, the Straits Times Index moved higher 4.15 points, or 0.1%, to 3,350.54

In Taiwan, the Taiex Index dropped 54.83 points, or 0.5%, to 10,830.90

In New Zealand, the NZX 50 gained 27.58 points, or 0.3%, to 10,878.95

In Australia, the ASX 200 tallied 19.29 points, or 0.3%, to 6,845.08