Japan stocks and India's Nifty 50 hit fresh highs as Asia-Pacific markets rise

Asia-Pacific markets rose on Tuesday, after the S&P 500 and the Nasdaq Composite closed at record highs overnight, with Japan's Nikkei and Topix hitting fresh highs.

Nikkei 225 rose over 1.96% to close at 41,580.17 after hiting a new peak at 41,769.35. The broad-based Topix also added 0.97% to close at 2,895.55 after reaching new highs at 2,907.21.

South Korea's Kospi inched up 0.34% to close at 2,867.38 even as shares of heavyweight Samsung Electronics gained 0.46%, even as the company's largest union continued its three-day strike as it seeks better pay. Hyundai on the other hand reached a tentative wage agreement with its labor union, averting a strike. Hyundai shares slid 3%.

Hong Kong's Hang Seng Index was up 0.1% as of its last hour of trading, while the CSI 300 advanced 1.12% to close at 3,439.81.

India's Nifty 50 index similarly hit an all-time high of 24,401.2 and the BSE Sensex added 0.38%.

Chinese electric vehicle giant BYD is set to invest $1 billion in Turkey to open a plant with an annual capacity of 150,000 vehicles, Turkey's industry and technology minister Mehmet Fatih Kacir said on Monday.

"The facility, which is planned to start production at the end of 2026, will directly employ up to 5,000 people," he said on social media platform X. Last week, the European Union had hiked tariffs on electric vehicles imported from China.

Australia's S&P/ASX 200 added 0.86% to close at 7,829.7, even as the country's consumer sentiment for July dipped 1.1% compared with a 1.7% increase in the previous month. Australia's business confidence climbed 6 points to +4, according to National Australia Bank.

"Business confidence rose relatively sharply in the month and is now back into positive territory and at its highest level since early 2023," said NAB's Head of Australian Economics, Gareth Spence.

Investors are also looking forward to the upcoming release of the U.S. consumer price index on Thursday for hints on the Federal Reserve's interest rate decision. Meanwhile, China's inflation data on Wednesday will provide insights on the state of the country's economic recovery.

Overnight in the U.S., the S&P 500 and Nasdaq closed at record highs. Earnings from some major financial giants and consumer companies are also on traders' watchlists this week.

—CNBC's Brian Evans and Pia Singh contributed to this report.