Asian stocks advanced on Tuesday, but gains were limited as traders kept a wary eye on the drop in commodity prices.
Spot gold held near its lowest level in more than five years in Asian trade. "The fall in gold may be a catch-up to the sharper rise in the dollar and fall in other commodity prices since mid-2014. Gold may also still appear over-valued compared to global bond yields and breakeven inflation expectations that reached record lows in first quarter," Greg Gibbs, head of APAC markets at RBS, wrote in a note.
In the energy space, West Texas Intermediate (WTI) crude fell 12 cents to $50.03 a barrel, and Brent crude for September was 10 cents lower at $56.55 a barrel, pushed down by a stronger dollar and still ample supply of both crude and refined products.
Overnight, U.S. stocks handed over a mildly positive lead on the back of a better-than-expected start to corporate earnings season. The Nasdaq Composite inched up 0.17 percent to another record high, while the blue-chip Dow and the S&P 500 ended marginally above the flatline.