Stocks in Asia traded mostly higher on Tuesday morning as investors monitored further developments in the US and China with the two economic powerhouses working toward a deal.
In Japan, Nikkei 225 rose 0.52% while Topix gained 0.93%. However, the shares of the airline ANA fell more than 0.5% following a Nikkei report that the company is expected to report more than 20% decline in profit.
The Hang Seng index in Hong Kong advanced 0.17%. South Korea's Kospi also added 0.1%. Meanwhile, the S & P / ASX 200 in Australia rose fractionally.
Chinese stocks on the mainland, on the other hand, limped in the region. The Shanghai composite shed more than 0.3%, and the Shenzhen component was fractionally lower. The Shenzhen composite also fell 0.1
Overall, the MSCI Asia index from Japan traded 0.29% higher.
Investors will continue to look at developments in US-China trade. The US Commerce Representative's office said on Monday that Washington will consider expanding some US $ 34 billion customs duties on imports from China. USTR said last week that China and the US are close to concluding a Phase 1 agreement.
For his part, US President Donald Trump said the agreement with China is expected to be signed "ahead of schedule," but did not elaborate on the time, Reuters reported.
"The two sides have apparently reached agreement in areas including standards used by agricultural regulators, but it is probably worth noting that so far neither party has officially said anything about the contentious issue surrounding China's demand for a US tariff withdrawal , ”Rodrigo Catril, senior currency strategist at the National Australia Bank, wrote in a morning note.
"Given the ups and downs we've seen over the last year or more on this front, I think it's very difficult to say firmly:" Yes, this is the final deal. Yes, that's the end of these problems, "Hugh Young, chief executive of Asia Pacific at Aberdeen Standard Investments, told CNBC's" Squawk Box "on Tuesday.
" I don't think it's done and dusted, and we won't talk about it in a year's time, I suspect we will still talk about it in a year's time, "Young said, citing questions like the US-China competition for supremacy in 5G wireless technology space.
Overnight on Wall Street, S&P 500 record high as state investors cheered for strong earnings and optimism in US-China trade, while the S&P 500 added 0.6% to close at 3,039.42 – above its previous record set on July 26. The Dow Jones Industrial Average rose 132.66 points to end its trading day at 27,090.72 while Nasdaq Composite gained 1% to close at 8,325.99.
Of the 206 S&P 500 companies reporting through Monday morning, 78% have met analysts' expectations, according to FactSet.
Currencies and Oil  The US dollar index, which tracks the greenback against a basket of their peers, was at 97,797 after touching the high above 97.8 yesterday.
The Japanese yen traded at 108.96 against the dollar after depreciating from levels below 108.9 in the previous session. The Australian dollar changed hands at $ 0.6840 after touching the highs above $ 0.688 yesterday.
Oil prices shed previous gains on slipping in the morning in Asian trading hours, with international benchmark Brent crude futures just below the flatline at $ 61.56 per barrel and US crude futures falling 0.18% to $ 55.71 per barrel.
What is in print:
- Japan's earnings: NTT Docomo, Nomura Holdings, NEC, ANA
- Australia: Reserve Bank of Australia Governor Philip Lowe speech at 14.45 hp / SIN
– CNBC's Lauren Hirsch and Fred Imbert contributed to this report.