Tuesday saw gains in the majority of Asian stocks, following Wall Street's overnight surge as investors welcomed the possibility of a reduction in US interest rates ahead of Federal Reserve Chair Jerome Powell's major speech later this week.

However, as the People's Bank maintained its benchmark lending prime rate steady as anticipated, surprising some traders hoping for additional unexpected rate cuts from the central bank, Chinese markets trailed behind their regional counterparts.

A strong lead-in from Wall Street helped other Asian markets rise as investors piled back into equities, particularly heavyweight technology sectors, as expectations of an interest rate decrease in September grew.

In Asian trade, U.S. stock index futures saw a little increase. This week, all eyes will be on Powell's speech at the Jackson Hole Symposium on Friday. There, he may give additional hints about the bank's intentions to start lowering interest rates.

Asia's top-performing equities were Japanese, with the Nikkei 225 index hitting a three-week high and climbing 1.8%. TOPIX index increased by 1.2%.

The strength of heavyweight technology stocks, which increased in tandem with their American counterparts, was the main factor driving the Nikkei's rise.

Following the People's Bank of China's decision to maintain its benchmark lending prime rate, Chinese markets underperformed relative to their global counterparts, aborting a six-month rally.

As anticipated, the PBOC maintained the same lending prime rate. However, some traders who were hoping for more rate reductions in the nation were nonetheless let down by the decision, particularly in light of the central bank's surprise rate drop in July.

Even while consumer spending and inflation in China improved somewhat in July according to the latest economic data, ongoing worries over the country's faltering economy harmed public perception of it overall.

(Sources: investing.com, reuters.com)