Asian equities advanced broadly on Tuesday, buoyed by stronger-than-expected Chinese economic data and positive sentiment around US chip exports to China, even as investors largely looked past renewed tariff threats from US President Donald Trump.
China’s GDP tops estimates
Data released by the National Bureau of Statistics showed that China’s economy grew 5.3% year-on-year in the first half of 2025, indicating resilience amid global headwinds and domestic structural reforms.
Factory output in June grew at its fastest pace since March, but retail sales growth moderated from the previous month, suggesting uneven recovery across sectors.
The Shanghai Composite Index, however, declined 0.42% to close at 3,505.21, as traders interpreted the strong data as lowering the likelihood of immediate stimulus measures.
The CSI 300 Index, tracking large-cap stocks listed in Shanghai and Shenzhen, ended little changed.
In contrast, Hong Kong stocks gained ground, led by technology shares.
The Hang Seng Index rose 1.6% to 24,590.12, following a modest gain on Monday, while the Hang Seng Tech Index advanced 2.8%.
Among notable movers, Alibaba Group Holding jumped 7% to HK$113.50, NetEase rose 3.4%, and Techtronic Industries climbed 3.9%. Electric vehicle maker Li Auto added 1.4%, while food delivery giant Meituan gained 4.4%.
Japan stocks rises on AI chip export approval
Japanese equities advanced after Nvidia confirmed it had received US government approval to resume exports of its H20 AI chip to China, easing concerns over further supply restrictions.
The Nikkei 225 Index climbed 0.55% to 39,678.02, despite some caution ahead of Japan’s upper house elections on July 20.
The broader Topix Index ended marginally higher at 2,825.31.
Semiconductor-linked stocks outperformed, with Tokyo Electron rising 3.5%, Advantest up 1.8%, and SoftBank Group gaining 2%.
In the bond market, Japanese government bond yields surged, with the 30-year yield hitting a record high amid fiscal concerns ahead of the vote.
Other regional markets
South Korea’s Kospi Index edged up 0.41% to 3,215.28, marking a second consecutive day of gains, supported by strength in the tech sector.
In Australia, equity markets closed at record highs, bolstered by rallies in banking, healthcare, and technology shares.
The S&P/ASX 200 rose 0.70% to 8,630.30, while the broader All Ordinaries Index gained 0.68% to 8,875.30.
Indian equity benchmarks ended higher on Monday, with the Nifty closing just below the 25,200 mark, supported by broad-based sectoral gains.
The Sensex rose 317.45 points, or 0.39%, to settle at 82,570.91, while the Nifty advanced 113.50 points, or 0.45%, to end at 25,195.80.
All sectoral indices closed in the green, led by gains in pharma, auto, PSU bank, consumer durables, and realty, which rose between 0.5% and 1%.
The broader markets also extended their uptrend for a second straight session, with the BSE Midcap and Smallcap indices gaining nearly 1 percent each.
Among the top gainers on the Nifty were Hero Motocorp, Sun Pharma, Bajaj Auto, Apollo Hospitals, and Shriram Finance.
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