India's Budget, South Korea's PPI at Stake

Asia-Pacific markets traded mixed on Tuesday after Wall Street shrugged off political uncertainty to post overnight gains.

Australia's S&P/ASX 200 rose 0.61%. Nikkei 225 Index The broader Topix index rose 0.41%, while the broader Topix index advanced 0.49%.

South Korea’s Kospi rose 0.58%, while the smaller-cap Kosdaq rose 0.42%. South Korea’s producer price index rose 2.5% year-on-year in June, compared with a 2.3% gain in May. Shares of popular messaging app Kakao plunged 4.63% after a South Korean court issued an arrest warrant for its founder Brian Kim on charges of market manipulation.

Hang Seng Index in Hong Kong China's Shanghai Composite Index fell 0.23%, while China's CSI 300 Index fell 0.52%.

Later on Tuesday, India is set to unveil its first budget under Prime Minister Narendra Modi’s third five-year term. Analysts at Barclays expect the coalition government to signal policy consistency in the budget, “showing continued fiscal austerity with little change in the spending mix.”

“While we maintain a focus on capital spending, we believe the government will use increased revenues to fund higher-revenue spending, balancing economic and political needs,” Barclays wrote in a recent note.

Traders in Asia will also be watching Singapore’s inflation data for June. The country’s consumer price index is expected to rise 2.7% year-on-year, according to economists polled by Reuters. That’s compared with a 3.1% gain in May.

The S&P 500 index in the United States rose overnight to record its best daily performance since June 5, as technology stocks rose following the index's worst weekly loss since April.

The benchmark index rose 1.08% to close at 5,564.41 points, its best daily performance since June 5, while the Nasdaq Composite advanced 1.58% to close at 18,007.57 points. The Dow Jones Industrial Average rose 127.91 points, or 0.32%, to close at 40,415.44 points.

CNBC's Samantha Sobin and Hakyung Kim contributed to this report.