Australia's ASX 200 surged 0.3% on Tuesday, propelled by BHP Group's 4.98% gain after robust first-half earnings. The mining titan's copper and iron ore profits hit record highs, offsetting weakness in other sectors. Meanwhile, Japan's Nikkei 225 and TOPIX indices plummeted 0.9%, extending losses triggered by Q4 GDP data showing anemic growth. Prime Minister Sanae Takaichi faces pressure to deploy additional stimulus as late-2025 measures proved ineffective.

Tech stocks underperformed globally, with Japan's SoftBank Group shedding 5% amid AI-driven industry pressures. Infosys and Tata Consultancy Services in India also faced headwinds as investors fret over AI's potential to erode market shares. Chinese and Hong Kong markets remained closed for Lunar New Year, limiting regional trading signals.

U.S. economic data looms large, with futures indicating Asian markets may track Wall Street's cues this week. Analysts highlight escalating AI disruption risks, citing Citi's warning about "sector rotation into defensives" as a bearish signal. BHP's performance underscores mining's resilience, while Japan's struggles reflect broader structural challenges in tech and industrial sectors.

Market volatility persists, with Asian indices showing mixed signals ahead of critical U.S. economic releases. The divergence between Australia's resource-driven gains and Japan's GDP-constrained decline highlights regional economic disparities. Investors remain cautious, balancing optimism over BHP's copper rally against lingering fears of prolonged AI-driven headwinds in software and tech sectors.