Asia-Pacific markets trade mixed after massive rally on Wall Street on U.S.-China trade deal

Asia-Pacific markets traded mixed Tuesday, following a massive rally on Wall Street after the U.S. and Chinaagreed to a trade deal.

Hong Kong stocks fell at the open with theHang Seng Indexdeclining 1.02% and the Hang Seng Tech index dropping 1.55%. This is a reversal from the strong gains both indexes logged in the previous session. Meanwhile, mainland China’sCSI 300index started the day flat.

Over in Japan, the benchmark Nikkei 225 surged 1.85%, while the broader Topix index advanced 1.36%.

In South Korea, theKospiindex moved up 0.26% while the small-cap Kosdaq added 1.34%.

Australia’sbenchmark S&P/ASX 200 rose 0.59%.

Investors will be paying close attention to Indian markets, which surged Monday on optimism over the India—Pakistan ceasefire. The benchmarkNifty 50ended the day at 24,924.70, its highest level since Oct. 16, 2024, while the BSE Sensex index closed at 82,429.90, its highest since Oct. 3, 2024.

U.S.stock futures were flat after all three key benchmarks hit their best day since April 9, as investors awaited the release of an inflation report.

Overnight stateside, stocks soared as investors’ fears of a recession in the U.S., sparked by a trade war with China, were abated after the two superpowers arrived at a deal.

TheDow Jones Industrial Averagesurged 1,160.72 points, or 2.81%, and closed at 42,410.10. The 30-stock index ended the session near its highs of the day, with buying enthusiasm remaining strong.

Meanwhile, the broad-basedS&P 500popped 3.26% to end at 5,844.19, giving it gains of over 20% since its April intraday low at the height of tariff pessimism. The benchmark’s year-to-date losses have now narrowed to just 0.6%.

TheNasdaq Compositeadded 4.35% and settled at 18,708.34, as the details of the trade deal sent technology stocks with exposure to China — likeTeslaandApple— higher.

— CNBC’s Brian Evans, Yun Li and Fred Imbert contributed to this report.