China's Shanghai Composite Index ( SHCOMP ) increased by 0.2%, after a gain of 2.1% the day before.
Hong Kong & # 39; s Hang Seng Index ( HSI ) declined slightly in early trade, down 0.2%. The index rose 2.2% on Monday, its biggest daily gain of two months.
On Tuesday morning, the People's Bank of China set its new lending rate at 4.25% – slightly lower than the current one-year reference lending rate, which has not changed in several years. LPR is a replacement that is intended to reflect better changes in market rates and make it cheaper and easier for companies to borrow. Analysts have described the measure as a cut in interest rates.
LPR will be set on the 20th of each month and serve as a new guidance rate for Chinese banks to price their loans to customers.
"While this would push banks to reduce lending rates a little, the impact on economic activity will be marginal," Capital Economics analysts wrote in a research note Tuesday, adding that, unlike a reference cut, it will only lead to Borrowing costs on new loans, not outstanding. "
The results, they added, are that China's central bank" still has work to do. "
The Asian markets also had a chance to assess Washington news on Monday whether the US government would add more than 45 new businesses associated with Huawei to an export blacklist.
At the same time, the government said it is renewing a temporary license which allows companies in the US to sell products to Huawei in some cases. The renewal lasts for 90 days and came into effect on Monday.
"Although not unexpected, the expansion of relief from Huawei sanctions had initially eased the markets of the week, "Jingyi Pan, an IG Group marketing strategist, wrote in a research note. She pointed out that US equities increased in particular.
But Ken Cheung Kin Tai, head of foreign exchange strategy for Asia at Mizuho Bank in Hong Kong, said that the extension of the deferral signaled a "postponement" of US-China trade talks, rather than offering a resolution.
Japan's Nikkei 225 ( N225 ) increased 0.4%. South Korea's Kospi ( KOSPI ) was about 0.5% up. Japan has approved shipments of high-tech material to South Korea for the second time since the introduction of export restrictions last month, Reuters reports on Tuesday.
Australia's S & P / ASX 200 gained 0.8%, up 1
% on Monday. The Australian central bank on Tuesday released the minutes of its August political meeting. It showed that policy makers believe it is "reasonable" for interest rates to remain low for a longer period to support economic growth.