### Asian Stocks Rise Amid Tech Gains But Trade Worries Persist

Most Asian stocks experienced an uptick on Tuesday, driven by strength in the technology sector. This upward movement followed a positive close on Wall Street, led by gains in tech and energy stocks. However, the momentum from the U.S. stock market faded during the Asian trading session, with S&P 500 Futures down 0.3%.

Chinese markets reopened after an extended weekend but saw little movement, reflective of heightened tensions between the U.S. and China. Investors remained concerned over strained trade relations and weak economic indicators. Meanwhile, South Korean markets were closed due to the presidential election.

Tech-heavy markets in Asia showed robust performance, notably Japan's Nikkei 225, which increased by 0.3%, and Hong Kong's Hang Seng index, which surged by 1.2%, recovering from its recent losses. The dip in U.S. Treasury yields contributed positively to tech stocks, supported further by ongoing strong demand for artificial intelligence technologies.

Key players in the tech sector saw notable gains. Taiwan's TSMC rose by 1% after its CEO, C.C Wei, commented on the potential limited impact of increased trade tariffs, balanced by strong AI demand. In Hong Kong, BYD Co's shares rose nearly 2%, recovering from six consecutive days of losses. The rise followed the reporting of positive sales figures for May, particularly in overseas markets. Conversely, last week's losses were driven by concerns over an intensifying EV price war.

Li Auto Inc. was the top performer on the Hang Seng, jumping nearly 5%. This surge came after Goldman Sachs raised the company's price target on Monday.

Chinese stock indexes Shanghai Shenzhen CSI 300 and Shanghai Composite hovered within a tight range. The tension in trade relations between Beijing and Washington affected market sentiment, particularly after U.S. President Donald Trump accused China of not adhering to a recent trade agreement—a claim firmly refuted by China. Even with these accusations, the U.S. administration hinted that trade negotiations with China had stalled, dimming hopes for a permanent trade resolution. Both nations had previously agreed in May to temporarily reduce their trade tariffs.

Economic data from China highlighted the adverse effects of U.S. tariffs. The Caixin manufacturing PMI contracted unexpectedly in May as overseas orders declined due to high tariffs. This was corroborated by recent government PMI data showing similar trends.

Other Asian markets were higher but saw limited gains due to persistent worries over trade tariffs and the global economic outlook. Australia's ASX 200 rose by 0.3%, buoyed by dovish minutes from the Reserve Bank's May meeting, which also enacted a 25 basis point rate cut. Nonetheless, Australian economic data showed weaknesses, with company gross operating profits decreasing by 0.5% in the first quarter and a larger-than-expected current account deficit reported.

Singapore's Straits Times index saw a marginal increase of 0.1%, while Gift Nifty 50 Futures for India pointed to a subdued start. The Reserve Bank of India is expected to announce a 25 basis point rate cut later this week.