BENGALURU (Reuters) - Indian shares extended gains on Tuesday on increasing hopes of a trade truce between the United States and China, while optimism around solid, consumer-driven economic growth in the U.S. aided sentiment.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS ticked up 0.1% after hitting a four-month high in the previous session.
In the United States, all three major stock indexes posted record closing highs on Monday, after U.S. officials indicated that a trade deal with China could be signed this month.
In domestic markets, private sector lender Yes Bank Ltd YESB.NS was the top gainer on the NSE index, rising as much as 8.84% to its highest since Oct. 31.
This pushed the Nifty Private bank index .NIFPVTBNK 0.3% higher.
The Nifty PSU Bank index .NIFTYPSU, which tracks the country's state-run lenders, advanced 0.5%. It was on track for an eighth straight session of gains, with shares of Allahabad Bank ALBK.NS gaining as much as 1.81%.
Mahindra and Mahindra's MAHM.NS shares were flat after the company said it will recall a limited batch of XUV300 vehicles to fix a faulty suspension component.
Meanwhile, Prime Minister Narendra Modi said on Monday that India will not join a China-led regional trade pact as it failed to address Delhi’s concerns over market access.
Among losers, shares of Bharat Electronics Ltd BAJE.NS fell as much as 4.94%, its lowest in nearly two weeks, after the firm reported a drop in quarterly profit on Monday.
Indian Overseas Bank IOBK.NS slid over 14% after the bank posted a wider quarterly loss.
Reporting by Chandini Monnappa in Bengaluru; editing by Uttaresh.V
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