Asian stocks turned in a mixed performance on Tuesday despite dovish Fed expectations and signs of easing Middle East tensions.
The dollar index was on the defensive as investors awaited minutes of the Federal Reserves July policy meeting and a speech from Chair Jerome Powell at Jackson Hole for additional clues on the possibility of a rate cut in the September policy meeting.
Gold and oil prices dipped in Asian trading as Israels demand for control over Gazas Philadelphi and Netzarim corridors threatened cease-fire talks with Hamas.
Chinas Shanghai Composite index fell 0.93 percent to 2,866.66 after the Peoples Bank of China left its benchmark lending rates unchanged as expected. Hong Kongs Hang Seng index dipped 0.33 percent to 17,511.08.
Japanese markets rallied as a weaker yen helped spur bargain hunting after steep losses in the previous session.
The Nikkei average jumped 1.80 percent to 38,062.92 after having snapped a five-day winning streak the previous day. The broader Topix index settled 1.11 percent higher at 2,670.54.
Land transportation shares were in focus, with East Japan Railway and West Japan Railway rising around 2 percent each after data showed the number of passengers on express and limited express trains during this summers Bon holiday period in Japan rose 7 percent from a year earlier.
Seoul stocks rose notably after snapping a five-day winning streak the previous day.
The Kospi average climbed 0.83 percent to 2,696.63, with tech stocks leading the surge. Market bellwether Samsung Electronics rose 0.8 percent and SK Hynix jumped 3 percent.
Australian stocks eked out modest gains after the minutes of Reserve Bank of Australias recent meeting showed the central bank had considered raising interest rates earlier in August.
The benchmark S&P/ASX 200 edged up 0.22 percent to 7,997.70 while the broader All Ordinaries index closed 0.16 percent higher at 8,207.60.
Across the Tasman, New Zealands benchmark S&P/NZX-50 index dipped 0.82 percent to 12,558.08, extending losses for a second straight session.
Power companies led losses, with Mercury NZ falling 2.9 percent on bleak FY25 outlook.
U.S. stocks rose overnight amid a broad-based rally as economic worries subsided and Fed officials signaled readiness to start interest-rate cutting cycle.
In economic news, a reading on leading indicators fell much more than expected in July but didnt signal recession.
The tech-heavy Nasdaq Composite surged 1.4 percent, and the S&P 500 added 1 percent to end higher for the eighth consecutive session while the Dow edged up 0.6 percent.