Most Asian stocks rose on Tuesday as technology stocks pushed higher on sustained optimism over artificial intelligence, with Japan’s Nikkei 225 index hitting a record high in catch-up trade.

Federal Reserve Bank of New York President John Williams said Monday he expects a healthy economy in 2026 and indicated he sees no near-term reason to cut interest rates.

U.S. consumer prices likely accelerated in December as some of the distortions related to the government shutdown that had artificially lowered inflation in November unwound, which would cement expectations of the Federal Reserve leaving interest rates unchanged this month.

Oil prices extended gains in Asian trading on Tuesday, rising for a fourth consecutive session amid supply disruption risks from Iran, where intensifying anti-government protests have stoked geopolitical fears.

As an open economy, Malaysia's growth outlook remains closely tied to conditions in its major trading partners, including China, Japan, the Euro Area and Asean, all of which are expected to experience slower growth in 2026 compared with 2025.

China's car sales are expected to be flat this year, extending a downtrend, while robust electric vehicle exports in 2025 are unlikely to be sustained, a Chinese industry association said on Friday.