As the third-quarter results season comes closer, most Asian equities increased on Tuesday, following Wall Street's record highs. However, Chinese stocks declined as hope for further fiscal stimulus waned.

The S&P 500 and the Dow Jones reached all-time highs due to advances in technology and banking sectors, indicating that regional markets were picking up strong cues from Wall Street. In Asian trading, U.S. stock index futures saw a little improvement as attention shifted to several significant Q3 results that are scheduled for release this week.

Chinese stocks underperformed relative to other markets as a result of the previous two days' dismal trade and inflation statistics. Beijing's announcement of further fiscal stimulus measures also only offered sporadic assistance because the government omitted numerous crucial specifics, leaving investors in the dark.

After a lengthy weekend, Japanese stocks saw the strongest advances among Asian stocks.

The TOPIX gained 1%, but the Nikkei 225 jumped 1.7% and exceeded 40,000 points for the first time since mid-July. The majority of gains went into technology equities, particularly chipmakers, which followed the overnight advances of their rivals in the United States.

Reports that Tokyo Metro raised $2.3 billion in the nation's largest initial public offering in six years also helped to improve sentiment towards Japanese markets.

A worldwide rush into economically sensitive industries helped Australian stocks, which should continue to do well as interest rates decline.

Tuesday's movements in China's Shanghai Composite and Shanghai Shenzhen CSI 300 indices were flat to low.

Monday saw significant increases in Chinese markets as investors welcomed the possibility of further stimulus in the nation, particularly after the Ministry of Finance presented plans for fiscal stimulus in a recent briefing.

However, the MoF continued to omit important information about its intentions, most notably the extent and timing of the intended budgetary actions. Investors were also upset by the lack of explicit support for private consumption.

Negative economic data from China further damaged perceptions of the nation. According to data released on Monday, the nation's trade balance increased less than anticipated as export growth abruptly stopped. Previous statistics indicated that China's disinflation was still very much in effect.

(Sources: investing.com, reuters.com)