Asian stocks advanced on Tuesday ahead of a second day of talks in London between China and the U.S. to resolve tariff disputes and strengthen economic relations. U.S. officials expressed optimism after the first day of negotiations, boosting investor sentiment.
Nonetheless, regional gains were capped amid caution ahead of key U.S. inflation readings due this week and the Federal Reserve's interest-rate decision, which is slated for June 18.
The dollar inched up in Asian trading and gold was marginally higher around $3,330 per ounce levels, while oil held an advance on hopes for progress in U.S.-China trade negotiations.

China's Shanghai Composite Index traded within a tight range before ending 0.4 percent lower at 3,384.82 amid prevailing tensions over shipments of technology and rare earth elements. Hong Kong's Hang Seng Index slipped marginally to close at 24,162.87.

Japanese markets ended modestly higher to extend gains for a third consecutive session as bond yields fell after reports on relief over possible government auction.

The Nikkei 225 Index rose 0.3 percent to 38,211.51, while the broader Topix Index finished marginally higher at 2,786.24.

Seoul stocks ended higher for a fifth straight session on the back of foreign buying. The Kospi climbed 0.6 percent to 2,871.85, led by defense and shipbuilding shares.

Hanwha Aerospace soared 6.4 percent and its affiliate Hanwha Ocean surged 4.4 percent.

Australian markets rose notably to close at a record high. The benchmark S&P/ASX 200 Index jumped 0.8 percent to 8,587.20, led by banks. The big four banks rose between 1 percent and 1.5 percent. The broader All Ordinaries Index closed up 0.8 percent at 8,812.70.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 Index edged up by 0.2 percent to 12,564.42.

U.S. stocks ended mixed overnight as investors waited for details about the U.S.-China trade talks that kicked off in London to resolve trade issues between the two economic giants.

The S&P 500 inched up marginally to extend gains for a second straight session and the tech-heavy Nasdaq Composite gained 0.3 percent to reach a new three-month closing high, while the narrower Dow ended marginally lower.