Market participation was limited as investors trimmed positions and avoided large bets with several Asian markets set to close later in the week for holidays

Most Asian stock markets edged higher on Tuesday as investors drew comfort from a rebound in technology shares and easing inflation signals, although trading remained subdued amid thin year-end volumes.

Market participation was limited as investors trimmed positions and avoided large bets with several Asian markets set to close later in the week for holidays. Year-end trading typically brings lighter volumes, which can exaggerate price moves while keeping overall momentum muted.

Shanghai Composite gained 0.3 per cent, while the Shanghai Shenzhen CSI 300 added 0.6 per cent. Hang Seng index rose 0.4 per cent.

KOSPI advanced 0.4 per cent, while Straits Times Index ticked 0.3 per cent higher.

Futures tied to Nifty 50 ticked up 0.1 per cent.

The S&P/ASX 200 climbed more than 1 per cent, with miners leading the charge on higher commodity prices.

Minutes from the Reserve Bank of Australia’s (RBA) latest policy meeting showed policymakers had discussed the possibility that interest rates may need to rise in 2026 if inflation proves more persistent than expected. The minutes highlighted the central bank’s continued focus on price stability, even as markets had been leaning toward a more dovish outlook.

Nikkei 225 was little changed, while the broader TOPIX index gained 0.6 per cent.

Japan’s finance minister Satsuki Katayama said on Tuesday that authorities had a “free hand” to deal with excessive moves in the yen.

The remarks reinforced expectations that Tokyo remains alert to sharp currency swings that could destabilise markets.

A weaker currency tends to support Japan’s export-heavy sectors by boosting overseas earnings, while abrupt appreciation can pressure shares.