Asian markets experienced a general decline on Tuesday as investors processed a newly established rare earths framework signed by U.S. President Donald Trump and Japan’s Prime Minister Sanae Takaichi, which moderated the upward momentum stemming from market’s record highs. Trump engaged with Japan’s Emperor Naruhito upon his arrival in Tokyo on Monday, marking the first instance of a foreign leader conducting discussions with Takaichi since her assumption of office. Japan’s Nikkei 225 experienced a decline from its record high on Tuesday, decreasing by 0.58% to 50,219.18, while the broader Topix index fell by 1.18%, closing at 3,285.87.

Other Asia-Pacific markets exhibited a more mixed performance, in contrast to the gains observed, which propelled all three major U.S. indexes to record closing highs. On Monday, South Korea’s Kospi experienced a decline from its record high, decreasing by 0.8% to finish at 4,010.41. The small-cap Kosdaq experienced a slight increase, concluding the day at 903.3, marking its highest point since April 2024. South Korea has released its third-quarter GDP figures, surpassing forecasts and indicating the most rapid growth rate in over a year.

Australia’s S&P/ASX 200 experienced a decline of 0.48%, concluding the trading session at 9,012.5. The Hong Kong Hang Seng index experienced a decline of 0.33%, concluding at 26,346.14. Meanwhile, the mainland China’s CSI 300 recorded a loss of 0.51%, closing at 4,691.97, thereby interrupting a three-day winning streak. China’s Sany Heavy Industry experienced a flat trading performance during its Hong Kong debut on Tuesday, having successfully raised HKD$12.36 billion ($1.59 billion) in what stands as one of the city’s largest listings for the year.

Overnight in the U.S., the S&P 500 experienced an increase of 1.23%, closing at 6,875.16, marking its inaugural close above the 6,800 threshold. The Nasdaq Composite experienced a rally of 1.86%, reaching 23,637.46, supported by an increase in Nvidia and other semiconductor stocks. The Dow Jones Industrial Average increased by 337.47 points, representing a rise of 0.71%, reaching a level of 47,544.59. This week presents significant market catalysts, notably the earnings reports from major technology firms, a decision from the Federal Reserve regarding interest rates, and the possibility of a trade agreement with China.