Asian stocks rose broadly on Tuesday in anticipation of a Federal Reserve rate cut when the U.S. central bank announces its monetary policy decision on Wednesday.

Fed officials will also release their quarterly update of economic and rate forecasts on Wednesday and Fed Chair Jerome Powell will hold his regular post-decision press conference, as concerns about a softening labor market take precedence over sticky inflation.

The focus was also on ongoing U.S.-China talks, with reports suggesting that Washington has reached a "framework" deal with China on TikTok's U.S. operations.

Also, U.S. Treasury Secretary Scott Bessent stated that the Trump administration will hold off on new tariffs on Chinese goods related to Russian oil purchases, pending substantial tariff actions from European countries.

China's Shanghai Composite index finished marginally higher at 3,861.86 after a choppy session. Hong Kong's Hang Seng index ended little changed with a negative bias at 26,438.51, giving up early gains.

Japanese markets eked out modest gains to close at a record high for a fourth day running, led by gains in the chip sector.

The Nikkei average gained 0.30 percent to close at 44,902.07 while the broader Topix index settled 0.25 percent higher at 3,168.36.

Wafer maker Sumco jumped more than 9 percent while Tokyo Electron, Resonac Holdings and Disco Corp climbed 2-8 percent.

Seoul stocks rose sharply to set a new record high for the fifth consecutive session as blue-chip tech shares like Samsung Electronics and SK Hynix soared 4-5 percent on expectations for the South Korean government's policy road map aimed at fostering advanced industries. The Kospi average jumped 1.24 percent to 3,449.62.

Australian markets ended modestly higher as energy and mining stocks surged, more than offsetting losses in the healthcare sector.

Finance Minister Nirmala Sitharaman too confirmed that New Delhi's diplomatic team is deeply engaged in ongoing negotiations.

In a post on Truth Social, Trump had said, "I am pleased to announce that India, and the United States of America, are continuing negotiations to address the Trade Barriers between our two Nations."

Textile stocks surge:

All these developments reignited hopes for easing trade tensions between the two countries, which would likely benefit the export-oriented textile stocks.

Indo Count Industries shares rallied around 10 percent to trade at Rs 307.79 apiece. KPR Mill shares surged 7 percent to trade at Rs 1,121.80 apiece, while Pearl Global Industries shares jumped nearly 6 percent. Raymond Lifestyle shares jumped nearly 4 percent. Arvind shares rose around 2 percent.