Asian Stocks Rise Amid Economic Policy Shifts

Asian stocks made gains on Tuesday amid subdued moves due to the holiday season. Chinese stocks rose on announcements of new fiscal support from Beijing, while investor caution persists due to economic challenges. Global markets are closely monitoring U.S. Federal Reserve policies and interest rate projections.

Asian stocks saw a slight upward trend on Tuesday, despite being somewhat restrained due to the holiday-shortened week. The U.S. dollar maintained its strength, reaching a two-year high, as U.S. Treasury yields remained elevated in anticipation of fewer Federal Reserve rate cuts in 2025.

Chinese stocks continued to climb, bolstered by news of increased governmental support aimed at stabilizing the country's wavering economic recovery. The CSI300 and Shanghai Composite Index each gained 0.9%, while Hong Kong's Hang Seng Index rose by 1.08%.

Despite these gains, investor outlook on China's economy remains cautious, particularly given potential challenges with U.S. trade policies under President-elect Donald Trump and domestic economic issues.

(With inputs from agencies.)