(fxcue news) - Asian stocks ended mixed on Tuesday and the dollar rose after Federal Reserve Chair Jerome Powell hinted at smaller rate cuts. Geopolitical tensions also weighed after Israel launched ground operation in southern Lebanon. Oil prices fell nearly 1 percent in Asian trading as demand worries overshadowed signs of escalating Middle East tensions. Gold edged up slightly but hovered below recent record highs ahead of U.S. labor market data due this week that could offer more clarity on the pace of U.S. rate cuts. Mainland Chinese markets were closed for a week starting today for the National Day holidays. Hong Kong markets were also shut but will reopen on Wednesday. South Korean markets were closed for Armed Forces Day. Japanese markets bounced back as the yen extended losses for a second day running and the BoJ Summary of Opinions indicated no immediate plans for further rate hikes. Also, a key survey showed that big manufacturer sentiment held steady in the third quarter. The Nikkei average rose 1.93 percent to 38,651.97 after shedding 4.8 percent on Monday. The broader Topix index settled 1.69 percent higher at 2,690.78. Heavy machinery maker Kawasaki Heavy Industries surged 8.3 percent and Mitsubishi Heavy Industries rallied 7.8 percent as Japan's parliament formally elected former defense minister Shigeru Ishiba as the country's new prime minister. Automakers Honda Motor, Toyota and Nissan all rose around 2 percent on the back of a weaker yen. Chip-related heavyweights Advantest and Tokyo Electron climbed 2-3 percent. Australian markets fell notably, with miners and banks leading losses. The benchmark S&P/ASX 200 dropped 0.74 percent to 8,208.90 while the broader All Ordinaries index ended down 0.66 percent at 8,481.90. Investors reacted to mixed economic data, with retail sales rebounding by more than expected in August while the manufacturing sector's deterioration worsened in September. Qantas Airways tumbled 3.4 percent after an announcement that it will buy a 25 percent stake in Virgin Australia from U.S. private equity firm Bain Capital. REA Group shares jumped 4.9 percent after the property listing firm said it would no longer seek to buy British property portal Rightmove. Across the Tasman, New Zealand's benchmark S&P/NZX-50 index rose 0.35 percent to 12,46.69. U.S. stocks struggled for direction before closing higher overnight amid optimism that the economy is headed for a soft landing and that the Fed will continue cutting rates. The Dow finished marginally higher, and the S&P 500 rose 0.4 percent to reach record closing highs as Fed Chair Jerome Powell said the economy remains on solid footing. He signaled that two more quarter-percentage-point cuts to the benchmark fed funds rate are possible this year but the downward path for rates is not on a preset course. The tech-heavy Nasdaq Composite added 0.4 percent to extend its winning streak to two straight months.