Asian stocks were largely subdued on Tuesday, tracking overnight losses on Wall Street amid thin trading volumes at year-end. Investors assessed the Chinese manufacturing activity data, which showed slower expansion. Trading volumes were thin as most major indexes shut for the year-end holiday.
Stock markets in Japan, South Korea, and Thailand were closed on the last trading day of the year, while markets in Hong Kong, the Philippines, Australia, and New Zealand saw a shortened trading session. U.S. stock index futures were slightly lower in Asian trade on Tuesday, after Wall Street fell sharply with tech stocks dipping amid profit-taking on Monday. Chinese stocks fell as manufacturing activity expanded at a slower pace.
Indexes fell 0.4% each on Tuesday, in contrast, Hong Kong’s index rose by 0.7%. This marked the third straight month of expansion, driven by a series of fresh stimulus measures. However, the rise fell slightly below market expectations and was lower than the previous month’s reading, sparking concerns about the long-term industrial health of the world’s second-largest economy.
Markets subdued amid holiday closures
China has been grappling with an economic slowdown and a struggling property sector. Markets are holding out for more clarity on Beijing’s plans for stimulus measures in the coming year.
Recent reports suggested that the country will ramp up fiscal spending to support economic growth. In Australia, China’s largest trading partner, the index fell 0.9%. Singapore’s index was largely unchanged while Malaysia’s inched 0.1% lower.
South Korean political turmoil continues as markets remained closed on Tuesday. The index has recorded four consecutive declines since Monday. A South Korean court approved an arrest warrant for President Yoon Suk Yeol, who has been impeached and suspended from office following his decision to impose martial law on December 3, according to investigative authorities.
The Corruption Investigation Office for High-ranking Officials (CIO) stated that the Seoul Western District Court granted the warrant sought by investigators probing Yoon’s brief imposition of martial law. Stocks may continue to show volatility as the Asian region grapples with economic uncertainties and political turbulence.
