Investing.com – Asian markets edged higher in morning trade on Tuesday as U.S. stocks closed in positive territory after dipping early on trade concerns.
Overnight, the Dow Jones Industrial Average rose 0.15%, the S&P 500 edged up by 0.31% and the Nasdaq composite advanced 0.76%.
Investors are likely to continue monitoring developments on the trade front as the U.S. is set to impose a 25% tariff on $34 billion worth of Chinese goods before the July 6 deadline. In response, China has announced that it would retaliate with duties on the same value of U.S. products.
The Shanghai Composite and the Shenzhen Component opened 0.2% and 0.1% higher by 9:40PM ET (01:40 GMT). Hong Kong’s Hang Seng Index slumped 3.0% after returning from a Monday public holiday.
Chinese state media “The Economic Daily” said the recent sell-off in mainland equity markets was an "irrational overreaction", urging investors not the panic over growing trade tensions between China and the U.S.
"Intensifying trade frictions between China and the United States is a test that the Chinese economy inevitably had to experience during its rise," the Economic Daily said.
"We have long anticipated and prepared for this...The impact on the Chinese economy is within a controllable range."
Meanwhile, China Mobile made headlines after reports on Monday suggested that the Trump administration moved against letting the government-owned telecommunications company enter the U.S market.
The National Telecommunications and Information Administration, a branch of the Commerce Department, said in a filing that the move by the phone carrier would pose national security risks, and that the Federal Communications Commission should deny China Mobile’s application to offer international voice traffic between the U.S. and foreign countries.
"The deepening integration of the global telecommunications market has created risks and vulnerabilities in a sector replete with a broad range of malicious activities,” the NTIA said in its filing.
Elsewhere, Japan’s Nikkei 225 and South Korea’s KOSPI both edged up 0.2% in morning trade.
Down under, Australia’s S&P/ASX 200 gained 0.4%. The Reserve Bank of Australia is set to announce its interest rate decision later in the day.