This is CNBC's live blog covering Asia-Pacific markets.

Asia-Pacific markets traded mixed Tuesday as investors awaited further details on the U.S.-China trade talks, which were slated to continue for a second day.

Officials from both countries held trade talks in London on Monday, with U.S. Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer meeting with their Chinese counterparts led by Beijing's Vice Premier He Lifeng.

Christian Floro, market strategist at Principal Asset Management, foresees that the "market backdrop will remain uncertain in the period ahead," in light of the "fluid nature of trade policy."

Urging investors to prepare for continued market volatility, Floro noted that now is an opportune time to look at "previously overlooked value-oriented stocks and international equities."

He identified investment opportunities in domestic-oriented sectors such as utilities, real estate and financials, which are typically less sensitive to trade-related shocks. Pockets of opportunities can also be found in software and internet companies, Floro added in a Tuesday note.

Japan's benchmark Nikkei 225 pared earlier gains to end the day 0.32% higher at 38.211.51, while the broader Topix index was flat at 2,786.24.

South Korean markets rose for the fifth consecutive session. The Kospi index advanced 0.56% to end the day at 2,871.85, while the small-cap Kosdaq added 0.91% to 771.20.

Mainland China's CSI 300 index closed 0.51% lower at 3,865.47 while Hong Kong's Hang Seng Index was flat at 24,162.87.

Meanwhile, India's benchmark Nifty 50 moved up 0.15% while the BSE Sensex index was flat as of 1.40 p.m. Indian Standard Time.

Over in Australia, the S&P/ASX 200 benchmark advanced 0.84% to end the day at a record high of 8,587.20.

U.S. stock futures fell in late Asian hours, after President Donald Trump said that the talks with China were going well and he was "only getting good reports," according to Reuters.

Overnight stateside, moves on all three key benchmarks on Wall Street were muted. The broad-based S&P 500 inched up 0.09% and notched a second winning session, closing at 6,005.88. The Nasdaq Composite climbed 0.31% to end at 19,591.24. The Dow Jones Industrial Average ticked down 1.11 points and closed at 42,761.76.

— CNBC's Pia Singh and Jesse Pound contributed to this report.

Japanese economy 'unlikely to slip into a recession': Nomura

The Japanese economy is "unlikely to slip into a recession," even if U.S. President Donald Trump's tariff rollout causes a slowdown, Nomura said.

This is because the East Asian giant's economy is driven by the services industry, and fresh stimulus measures are expected to be doled out through a supplementary budget, the investment bank's analysts, led by Kyohei Morita, wrote in a Tuesday note.

They added that corporate investments in software and efforts to address labor shortages would help the Japanese economy.

Still, they cautioned that the tariffs may cause "downward pressure" on the Japanese economy from July to September. Against this backdrop, they expect the Bank of Japan to hike rates from January 2026.

Their comments came as central bank governor Kazuo Ueda reportedly stressed the BOJ's readiness to keep raising interest rates if underlying inflation approaches its 2% target.

"Once we have more conviction that underlying inflation will approach 2% or hover around that level, we will continue to raise interest rates to adjust the degree of monetary support," Ueda told parliament on Tuesday.

— Amala Balakrishner

Australian stocks hit all-time high

Australian stocks closed at a record high Tuesday, ahead of day two of the U.S.-China trade talks.

China is the top export destination for Australian goods, and investors are hoping that a positive outcome from the trade talks would spur economic activity down under.

The 200-stock benchmark S&P/ASX 200 rose 0.84% to end the day at 8,587.20.

Gains were led by banking and energy stocks.

The country's big four banks rallied, with shares in National Australia Bank gaining 1.53%, Commonwealth Bank adding 1.17%, Macquarie Group up 1.11%, and Westpac Banking up 0.96%.

Elsewhere in the energy sector, shares in Woodside Energy and Santos, two of Australia's top oil and gas companies, increased 0.65% and 1.22%, respectively.

— Amala Balakrishner

Hong Kong shares fall ahead of Day 2 of U.S.-China trade talks

Hong Kong stocks fell in choppy trade Tuesday, ahead of the second day of trade talks between the U.S. and China.

The Hang Seng Index was down 0.22% as of 2.40 p.m. local time. Many major Chinese companies are listed on the index, which is up by more than 20% since the start of the year. Its losses were led by the technology and consumer-focused sectors.

Meanwhile, the tech-heavy Hang Seng Tech Index plunged 1.16%, reversing course from sharp gains in its previous session.

The worst performers on the index were Kingdee International Software Group, which declined 4.44%, Hua Hong Semiconductor, which dropped 3.85% and Li Auto, which fell 3.17%.

The Hang Seng Tech Index ETF shows the day's moves:

— Amala Balakrishner

Chinese stocks fall ahead of Day 2 of U.S.-China trade talks

Chinese stocks advanced Wednesday, reversing course from losses in the previous day, following news of the U.S. and China reaching an agreement.

As at 11.43 a.m. local time, Mainland China's CSI 300 index had risen 0.83% to 3,897.30, its highest level since May 22.

Meanwhile, the Hang Seng China Enterprises Index, which captures the performance of mainland China stocks listed in Hong Kong, popped 1.05%, also reversing course from the losses in its previous session.

Among the top three performing stocks on the index were Tencent, which surged 4%, BYD, which gained 3.82% and Alibaba which rose 1.9%.

The Hang Seng China Enterprises Index ETF reflects the day's moves:

— Amala Balakrishner

South Korean stocks to rally and enter bull market: Macquarie

Macquarie Group predicts that South Korean stocks will rally and enter a bull market – similar to the year 2000 and 2007, when the country had presidents from the Democratic Party.

"We believe Lee's government is likely to implement expansionary fiscal policy and be supportive of the stock market," Daniel Kim, the investment bank's head of research in Korea wrote in a Tuesday note. He was referring to the country's newly-elected President Lee Jae-myung, from the Democratic Party.

The Democratic Party "has been a strong supporter of minority shareholder value and commercial law changes. This should be positive for the stock market," he added.

As of 1.08 p.m. local time, the Kospi index had risen 0.74% to 2,876.79, its highest level since July 11 2024. The index has gained nearly 20% since the start of the year.

Meanwhile, the small-cap Kosdaq index was last seen trading up 0.72% at 769.74, its highest since Feb. 27. The index has risen 13.33% since the start of the year.

Gains were broad-based across sectors, with strong moves seen in Poongsan Corp which surged 15.15%, Lotte Chemical, which increased by 10.71% and Hyundai Rotem which advanced 9.26%.

Among the index heavyweights, Samsung Electronics was last seen down 1.34% while SK Hynix added 1.31%.

— Amala Balakrishner

South Korean supermarket stocks plunge on potential holiday closure bill

Shares of South Korean supermarket chains took a beating Tuesday, after the ruling Democratic Party of Korea reportedly proposed a bill mandating the closure of large chains on public holidays.

Losses were led by Lotte Shopping, which had plunged 8.3% and Emart, which retreated 7.95% as of 12.22 p.m. local time.

Shares of Shinsegae, which owns Emart, were also down 1.29%, while Hyundai Department Store fell 5.4%.

— Amala Balakrishner

Taiwan shares cross 2% to over 2-month high

Taiwan's benchmark Taiex index surged 2.01% to hit 22,229.80 as of 11.01 a.m. local time, its highest level since Mar. 26.

The advance was led by the technology, energy, and basic materials sectors, according to data from LSEG.

The top three performers were Mercuries Data Systems and Fittech which advanced by 9.94% each, and Bonny Worldwide which added 9.91%.

Meanwhile, shares of tech giants Taiwan Semiconductor Manufacturing Co and Hon Hai Precision Industry — known globally as Foxconn — were last seen trading 2.99% and 0.65% higher, respectively.

The iShares MSCI Taiwan ETF shows the index's moves:

— Amala Balakrishner

Asian currencies mostly fall as investors await details of U.S.-China trade negotiations

Asia-Pacific currencies mostly weakened against the greenback Tuesday as investors awaited updates on trade negotiations between the U.S. and China.

The U.S. dollar index, which measures the currency against six major rivals, moved up 0.31% to 99.251 as of 10.45 a.m. Singapore time, after falling the day before.

The Japanese yen depreciated 0.26% against the dollar to 144.98, after Finance Minister Katsunobu Kato reportedly said that the government will conduct appropriate debt management policies while having close communication with market participants.

Similarly, the South Korean won weakened 0.33% against the dollar to 1,358.56.

Meanwhile, China's offshore yuan and the Australian dollar traded flat against the greenback at 7.1839 and 0.6513, respectively.

— Amala Balakrishner

Oil extends gains as investors await details of U.S.-China trade talks

Oil prices continued to rise Tuesday, following expectations of a resumption in U.S.-China trade talks for a second day, after reports of progress on the first day.

Brent Crude remained above $67 per barrel after rising nearly 1% to its highest level since Apr. 28 on Monday.

As at 9.20 a.m. Singapore time, Brent Crude was up 0.25% to $67.21 per barrel.

Meanwhile, the West Texas Intermediate crude added 0.23% to $65.44, after hitting its highest level since Apr. 4 earlier in the session.

The moves come alongside a weaker dollar.

China is the world's largest importer of oil, so progress in trade negotiations between the two superpowers could ease fears of weaker energy demand and a weaker global economic outlook.

— Amala Balakrishner

Investors are 'jaded' by tariffs, Yardeni says

Investors have become weary from President Donald Trump's tariff policy rollout that has sent stocks on a rollercoaster, according to Ed Yardeni of Yardeni Research.

"The market's become very jaded about these tariffs, and rightly so," Yardeni said on CNBC's "Squawk on the Street" Monday morning.

"The game changes all the time," Yardeni said. "On balance, it's in everybody's interest to come up with some solution to this that doesn't cause a recession in any country, or certainly not in the world economy."

— Alex Harring