- As investors weighed the impact of Covid infections in China and parsed comments from Federal Reserve officials on interest rate hikes, Asian stocks were mixed.

- A measure of Asian equities pared earlier gains as Hong Kong and mainland equities fell. China's losses increased as daily virus infections in China reached near-record levels.

- Japan and Australia's stocks rose, while US futures made minor gains after technology stocks, which are typically more sensitive to interest rates, dragged the S&P 500 lower on Monday.

- Fed officials have remained steadfast in their fight against inflation. Nonetheless, Fed's Daly stated that officials must be mindful of the lags in the transmission of policy changes, while her Cleveland counterpart Fed's Mester stated that she is open to slowing the pace of rate hikes.

- The dollar fell after rising on Monday as investors sought safe-haven assets. Government bond yield curves flattened in Australia and New Zealand as short-maturity rates rose, mirroring similar moves in the US on Monday. Tuesday's treasury yields fell.