Benchmarks in Shanghai and Hong Kong retreated after the White House said a proposed national security law might jeopardize the Chinese territory's status as a global financial centre.
India's Sensex opened up 0.7% at 30,816.97. New Zealand gained 1.2% while Singapore, Bangkok and Jakarta declined. Hong Kong's leader tried Tuesday to reassure businesses and the public the law wouldn't threaten civil liberties. Details haven't been released, but the decision to enact the law reflects the determination of President Xi Jinping's government to tighten control over Hong Kong following 11 months of anti-government protests.
In Washington, President Donald Trump said he was working on a response but declined to give details. Trump is "displeased with China's efforts and that it's hard to see how Hong Kong can remain a financial hub if China takes over," said White House press secretary Kayleigh McEnany. She declined to elaborate.The Dow Jones Industrial Average climbed 2.2% to 24,995.11. The Nasdaq composite rose 0.2% to 9,340.22.
Fresh optimism about the development of potential vaccines for COVID-19 have also helped lift stocks. Investors are focused on the process of reopening the U.S. economy, which is likely to accelerate over the summer.