Investing.com-- Most Asian stocks rose marginally on Tuesday, with China in the lead after Beijing cut a key lending rate as expected, while Australian shares maintained gains after the Reserve Bank cut interest rates and warned on the economy.

Regional markets took middling cues from Wall Street, which ended flat on Monday following a downgrade to the U.S. sovereign credit rating by Moody’s.

But S&P 500 Futures fell 0.2% in Asian trade, while gains in Chinese stocks were also limited after Beijing warned that U.S. controls on chip exports could undermine a trade truce reached last week.

Focus is now on a U.S. House of Representatives vote on a Trump-backed tax bill, as well as any more developments in U.S. trade talks.

Chinese stocks firm after loan prime rate cut; trade discourse in focus

China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes rose about 0.3% and 0.2%, respectively, while Hong Kong’s Hang Seng index jumped 1%.

Gains in Chinese markets came after the People’s Bank of China cut its benchmark loan prime rate as expected, bringing the rate further into record low territory.

The cut signaled that Beijing was open to doling out more monetary stimulus to support the economy, although investors were still holding out for more fiscal measures, especially those aimed at boosting consumption.

But gains in Chinese markets were limited by a warning from Beijing that the U.S.’ strict curbs on chip exports to China threatened to undermine progress in a trade deescalation between the two countries.

China’s Commerce Ministry criticized a recent warning from its U.S. counterpart that Chinese chipmaker Huawei’s Ascend chips violated U.S. export controls.

ASX 200 upbeat after RBA cuts rates and flags economic headwinds

Australia’s ASX 200 index rose 0.5% and was close to a three-month high, after the Reserve Bank of Australia cut interest rates by 25 basis points as expected.

The central bank remained uncommitted towards future easing, maintaining its data-driven stance towards future easing.

But the RBA flagged increasing risks to the Australian economy from global trade uncertainty, slightly trimming its 2025 gross domestic product forecast to 2.1%.

The RBA also forecast slightly softer inflation for the year.

Broader Asian stocks rose, with focus also on any more trade deals with the United States. Japan’s Nikkei 225 and TOPIX indexes added 0.5% and 0.3%, respectively, after economy minister Ryosei Akazawa confirmed that Japan-U.S. trade talks took place on Monday.

Kyodo reported that top-level U.S.-Japan talks are set to take place later this week.

South Korea’s KOSPI rose 0.2%, as did Singapore’s Straits Times index.

Gift Nifty 50 Futures for India’s Nifty 50 index fell 0.1%, pointing to a weak open in extended profit-taking after strong gains last week. India was also seen seeking an interim trade deal with the U.S. before a July deadline for Trump’s reciprocal tariffs.