Asia equities soar as Japan is boosted by Buffett and Hong Kong is up on AI and stimulus cheer.

Tuesday saw a rise in most Asian stocks, with Hong Kong markets rising on growing optimism about additional Chinese stimulus and buying into key technology companies driven by the nation's AI capabilities.

Berkshire Hathaway Inc. (NYSE:BRKa), owned by billionaire investor Warren Buffett, expanded its holdings in Japanese companies, resulting in significant gains for the country's five major trading houses. Japanese shares were also exceptional performers.

Wider regional markets followed Wall Street's overnight surge as U.S. stocks continued to rise out of the correction zone thanks to a combination of bargain buying and some indications of economic resiliency.

However, as investors remained cautious about more trade penalties and a possible recession, U.S. stock index futures declined in Asian trade. Caution was also raised by the prospect of a Federal Reserve meeting, which starts later on Tuesday.

Increased geopolitical tensions in the Middle East, following Israel's wave of lethal strikes against Hamas and the apparent collapse of a truce in January, dampened risk appetite.