Asian stock muted on U.S. rate cut

Shanghai Shenzhen CSI 300 fell 1%, the Shanghai Composite index shed 1.2%, Hang Seng index fell 1%, Nifty 50 index fell 0.2%, KOSPI rose 0.3%, while ASX 200 rose 0.5%

Most Asian stocks were rangebound on Tuesday, cooling after recent gains as mixed signals on U.S. interest rates and a crackdown on work visas by President Donald Trump spurred heightened caution.

Chinese stocks led losses in the region as local technology stocks retreated from a stellar rally over the past month. Hong Kong shares were especially hit by this trade.

Regional trading volumes were subdued on account of a Japanese holiday, while investors kept to the sidelines in anticipation of several key U.S. economic prints this week.

Asian markets took some positive cues from a strong overnight close on Wall Street, with U.S. stocks hitting record highs on gains in Nvidia and Apple. But this momentum was also seen fading into the Asian session, with S&P 500 Futures flat in regional trade.

Risk aversion also remained squarely in play, with gold prices hitting record highs in Asian trade.

Taiwanese and Apple suppliers TSMC and Hon Hai Precision Industry Co Ltd (Foxconn) were exceptions in Asia, rising around 2% each. Nvidia on Monday announced a $100 billion investment in OpenAI, sending its shares higher by nearly 4%, while optimism over improving iPhone demand boosted Apple shares.

KOSPI rose 0.3%, taking some support from tech shares, while Straits Times index was flat.

ASX 200 rose 0.5% as local miners were boosted by stronger metal prices. This helped markets look past weak purchasing managers index data for September, which showed growth in both manufacturing and services slowed.

Futures for Nifty 50 index fell 0.2%, with the index set for extended losses.

Shanghai Shenzhen CSI 300 fell 1%, while the Shanghai Composite index shed 1.2%. Hang Seng index fell 1%.