Asian stocks advanced for a second day in early trading on Tuesday, led by an extended rally in Tokyo's benchmark.

In Hong Kong, the Hang Seng Index opened 175 points, or 0.6 percent, higher at 27,202.

The China Enterprises Index was 58 points, or 0.6 percent, higher at 9,226 while the tech index was 44 points, or 0.8 percent higher at 5,461.

On the mainland, the benchmark Shanghai Composite Index opened up 0.11 percent at 4,127.

The Shenzhen Component Index was 0.05 percent lower at 14,200 while the ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, was down 0.33 percent at 3,321.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.4 percent while the Nikkei 225 jumped 2.1 percent, rising for a third consecutive day to a fresh record high.

US equity futures cooled off after a two-day rally, with S&P 500 e-mini futures down 0.1 percent, partially retracing gains on Wall Street overnight. On Monday, the S&P 500 rose 0.5 percent and the Nasdaq Composite gained 0.9 percent as technology ‍stocks found their footing following last week's AI-sparked selloff.

"Overall, we actually are quite positive on ⁠the economic situation, although we see maybe some cracks," said Kees Verbaas, Robeco’s global head of fundamental equity.

"The investment programmes ‍of the large companies are increasing rather than decreasing... which typically is good for economic activity. A lot of the AI supply chain is only possible thanks to emerging markets.”

With several critical economic reports due for release this week, including retail sales, inflation and delayed payrolls data, White House economic adviser Kevin Hassett said overnight that US job gains could be lower in the coming months as the Trump administration's immigration policies slow labour force growth and new AI tools boost productivity.

Treasury Secretary Scott Bessent said as well that senior US Treasury staff visited China last week "to strengthen channels of communication" between Washington and Beijing.

Market pricing continues to indicate that the Federal Reserve will remain on hold until June. Fed funds futures are pricing an implied 17.7 percent probability of a 25-basis-point rate cut at the US central bank's next two-day meeting on March 18, compared to a 18.4 percent chance on Friday, according to the CME Group's FedWatch tool. (Reuters & Xinhua)