Asia-Pacific markets rise on Tuesday, tracking Wall Street higher as softer-than-expected US retail sales data eased recession concerns and following China's stimulus plans and strong economic data. Meanwhile, US-listed Chinese stocks surged overnight on renewed optimism, with standout performances from: Alibaba (4.6%), Baidu (9%), PDD Holdings (5.2%), JD.com (4.8%) and XPENG (3.5%). Amidst rising trade tensions, US President Donald Trump stated on Monday that Chinese President Xi Jinping would be visiting Washington in the near future. Trump made the announcement at an event in Washington, highlighting recent visits from other global leaders. Japan ( NKY:IND ) rose 1.27% to around 37,900 while the broader Topix Index jumped 1.2% to 2,780 on Tuesday, extending recent gains after billionaire investor Warren Buffett’s Berkshire Hathaway Inc increased its holdings in the companies. The Japanese yen weakened past 149.5 per dollar on Tuesday, reaching its lowest level in nearly two weeks as investors braced for the Bank of Japan’s upcoming monetary policy decision. China ( SHCOMP ) rose 0.08% to 3,430, while the Shenzhen Component gained 0.3% to 10,990 on Tuesday, with both benchmarks hovering near multi-month highs as investors shifted their focus to upcoming earnings reports. Meanwhile, the PBoC is set to review its key lending rates on Thursday, following their record-low levels in February. Following strong economic data from the first two months of the year, ANZ has increased its 2025 China GDP growth forecast to 4.8%, up from 4.3%, and its 2026 forecast to 4.5%, up from 4.0%. HSBC on Tuesday also raised its forecast for China’s 2025 GDP growth to 4.8% from 4.5%. The bank also revised its forecast for GDP growth in 2026 to 4.5% from 4.4%. Hong Kong ( HSI ) rose 1.99% to 24,597 on Tuesday morning deals, marking the second session of strong gains as all sectors advanced. Chinese internet search giant Baidu ( BIDU ) launched its latest foundation model Ernie 4.5 and the deep-thinking reasoning model Ernie X1. Alibaba Group ( BABA ) rose more than 4% led by CEO Eddie Wu, told its major divisions that their 2025 performance will be gauged largely by their ability to leverage AI for future growth, according to a Financial Times report India ( SENSEX ) rose 1.18% to 75,050, hitting their highest level in nearly four weeks during morning trade on Tuesday. Australia ( AS51 ) rose 0.08% to around 7,910 on Tuesday, marking its third straight session of gains. The Australian dollar traded around $0.638 on Tuesday, hovering near a three-month high following hawkish signals from the Reserve Bank of Australia. RBA Assistant Governor Sarah Hunter stated that February’s rate cut was aimed at easing restrictive policy, but emphasized that the board remains more cautious than markets about further interest rate cuts. The OECD cut Australia’s 2026 growth outlook to 1.8% from 2.5%, below the RBA’s February forecast of 2.3%. Growth for 2025 stays at 1.9%, according to the OECD’s interim outlook. Meanwhile, investors are eyeing upcoming Australian employment data later this week, which could offer insights into the labor market’s strength and its influence on monetary policy. In the U.S., on Monday, all three major indexes ended higher , where US retail sales data helped ease recession concerns. U.S. stock futures held firm on Tuesday following two consecutive sessions of gains, providing a brief respite from the market’s recent downturn: Dow -0.23% ; S&P 500 -0.32% ; Nasdaq -0.46% . Looking ahead, traders are focused on the Federal Reserve’s policy decision on Wednesday. Meanwhile, both the Bank of Japan and the Bank of England are set to announce their monetary policy decisions later this week. Currencies: ( JPY:USD ), ( CNY:USD ), ( AUD:USD ), ( INR:USD ), ( HKD:USD ), ( NZD:USD ). More on Asia: China’s retail sales accelerate 4.0% Y/Y; industrial output grow 5.9% y/y exceeds forecasts; unveils special action plan Japan producer prices rise 4% Y/Y in February 2025, as expected Japan Q4 GDP growth revised slightly lower; annualized basis economy expands by 2.2% China’s CPI fell for first time in 13 months, PPI deflation persists China's trade surplus surpass forecasts, exports grow by 2.3% and imports shrink
