Most Asian stocks rose marginally on Tuesday, with China in the lead after Beijing cut a key lending rate as expected, while Australian shares firmed in anticipation of a widely expected rate cut by the RBA. 

Regional markets took middling cues from Wall Street, which ended flat on Monday following a downgrade to the U.S. sovereign credit rating by Moody’s. 

But S&P 500 Futures fell 0.2% in Asian trade, while gains in Chinese stocks were also limited after Beijing warned that U.S. controls on chip exports could undermine a trade truce reached last week. 

Focus is now on a U.S. House of Representatives vote on a Trump-backed tax bill, as well as any more developments in U.S. trade talks. 

Chinese stocks firm after loan prime rate cut; trade discourse in focus 

China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes rose about 0.3% and 0.2%, respectively, while Hong Kong’s Hang Seng index jumped 1%. 

Gains in Chinese markets came after the People’s Bank of China cut its benchmark loan prime rate as expected, bringing the rate further into record low territory. 

The cut signaled that Beijing was open to doling out more monetary stimulus to support the economy, although investors were still holding out for more fiscal measures, especially those aimed at boosting consumption. 

But gains in Chinese markets were limited by a warning from Beijing that the U.S.’ strict curbs on chip exports to China threatened to undermine progress in a trade deescalation between the two countries.