Asia-Pacific markets traded higher on Tuesday, diverging from losses on Wall Street overnight as investors assessed renewed tariff threats from United States President Donald Trump and ongoing concerns that artificial intelligence could disrupt parts of the software industry.
By 11:30 am AEDT (12:30 am GMT), Australia’s S&P/ASX 200 was trading 0.1% higher. Japan’s Nikkei 225 added 0.3%, while South Korea’s KOSPI 200 fell 0.8%, retreating from record highs reached in the previous session.
Regional sentiment was shaped by anticipation ahead of China’s loan prime rate (LPR) decision, as the People's Bank of China kept its benchmark lending rates unchanged on Tuesday, holding the one-year and five-year loan prime rates at 3% and 3.5% for a tenth consecutive month as policymakers balance support for a slowing economy with currency stability.
The one-year LPR serves as the benchmark for new commercial loans, while the five-year rate guides mortgage pricing and broader property lending.
Economic data from Seoul showed a mixed but generally resilient picture. South Korea’s composite consumer sentiment index rose to 112.1 in February 2026, up 1.3 points from January.
Meanwhile, the country’s producer price index increased 0.6% month-on-month in January, up from last month's reading of 0.4%, while holding steady at 1.9% on an annual basis.
Overnight in the United States, major benchmarks ended lower. The Dow Jones Industrial Average fell 1.7%, the S&P 500 dipped 1%, and the Nasdaq Composite declined 1.1%.
In China, mainland markets were closed for the Lunar New Year public holiday and were set to reopen later in the session.
In Hong Kong, the Hang Seng Index surged 2.5% to 27,081.9. India’s BSE Sensex advanced 0.6% to 83,294.7.
Among commodity markets, Brent crude fell 0.9% to settle at US$71.11 per barrel, while spot gold gained 2.3% to settle at multi-week highs of US$5,226.87 per ounce.
European equities also closed in negative territory on Monday. The FTSE 100 edged 0.02% lower to 10,684.7, just shy of fresh record highs. Germany’s DAX dropped 1.1% to 24,992.0, while France’s CAC 40 declined 0.2% to 8,497.2.
