Oil crept higher and the US dollar rose on Tuesday as hopes faded for a deal to get ships moving through the Strait of Hormuz, while a red-hot chip rally in chip stocks cooled and traders waited on US inflation figures.

In Hong Kong, the benchmark Hang Seng Index opened up 90 points, or 0.34 percent, at 26,497.

The China enterprises index was 18 points, or 0.2 percent, higher at 8,902 while the tech index was 23 points, or 0.45 percent, up at 5,129.

Up north, the Shanghai Composite Index opened up four points, or 0.1 percent, at 4,229.

The Shenzhen Component Index was up 53 points, or 0.3 percent, at 15,952 while the ChiNext Index was 18 points, or 0.5 percent, higher at 3,947.

In Tokyo, the Nikkei share average saw bumpy trade after opening 200 points, or 0.32 percent, higher at 62,618 as investors sold chip-related stocks to book profits after recent gains.

The 225-share benchmark had most of its early gains erased before hovering 129 points, or 0.21 percent, at 62,547 at one point before midday.

In Seoul, the Korea Composite Stock Price Index opened up 131 points, or 1.68 percent, at 7,953 before falling into the red to be 192 points, or 2.46 percent, down at 7,630 just before noon.

Markets are keeping a watchful eye on Trump's Wednesday visit to China, with expectations low for either progress on Iran or on the trade front, with the focus on the status quo holding.

"Investors should not expect sweeping agreements. A 'win' would mean no new tariffs or export controls, and perhaps small symbolic deals, such as agricultural purchases, aircraft orders, or signals on rare earths," said Daniel Casali, chief investment strategist at Evelyn Partners.

"These may seem minor, but stability at the margin matters." (Reuters & Xinhua)



Edited by Raymond Yeung