Hong Kong markets jumped more than 2% to lead gains in Asia-Pacific after China's central bank and financial regulator announced sweeping plans to cut benchmark interest rates in a bid to shore up growth amid trade concerns.

Hong Kong's Hang Seng Index rose 2.07%.

Elsewhere, markets in the region were mostly higher after reports that U.S. Treasury Secretary Scott Bessent and trade representative Jamieson Greer will meet their Chinese counterparts this week.

Japan's benchmark Nikkei 225 rose 0.22% while the Topix gained 0.38%. South Korea's Kospi gained 0.32% while the small-cap Kosdaq fell 0.7%.

Australia's benchmark S&P/ASX 200 rose 0.17%.

Mainland China's CSI 300 gained 1.01%.

Asian currencies gained against the greenback amid declining confidence in the US dollar.

"We are seeing a clear dislocation in terms of the USD's normal trade relationship, and this breakdown in correlation suggests that investors are reducing their exposure to the USD and repatriating capital to their home markets," said Peter Kinsella, global head of FX strategy at Union Bancaire Privee.

Global non-US investors are reducing allocations to the dollar and dollar-denominated assets, the FX strategist added. "The moves we are seeing in some of the Asian currencies reflect this phenomenon, and I expect this to continue."

Bessent and Greer will hold talks with Chinese officials in Switzerland this week to discuss trade and economic issues.

The discussions mark a potential turning point in easing trade tensions sparked by Trump, who last month raised tariffs on Chinese goods to 145% while easing levies on most other countries. In response, China imposed steep tariffs on US products.

U.S. stock futures rose Tuesday evening as investors eyed the latest updates on U.S. trade negotiations and awaited the Federal Reserve's interest rate announcement expected Wednesday afternoon. Dow Jones Industrial Average futures rose 280 points, or 0.7%. S&P 500 futures rose 0.8%, while Nasdaq 100 futures rose 1%.

Overnight in the U.S., the three major indexes closed lower. The Dow Jones Industrial Average fell 389.83 points, or 0.95%, to close at 40,829.00. The S&P 500 fell 0.77% to close at 5,606.91, and the Nasdaq Composite fell 0.87% to close at 17,689.66. All three major indexes posted consecutive declines.(Newsmaker23)

Source: CNBC