FX.co ★ Asian Shares Mixed On Weak China Data

Asian stock markets closed with varied performances on Tuesday, as China's exports and imports for November failed to meet expectations, highlighting the increasing challenges in trade.

Gold prices edged upward, and the yield on the U.S. 10-year Treasury note dropped by one basis point to 4.19 percent. Meanwhile, the dollar maintained stability ahead of this week's crucial U.S. consumer and producer inflation data, which are expected to influence the Federal Reserve's monetary policy outlook.

Oil prices experienced a slight decline, reversing recent gains fueled by China's enhanced stimulus commitments and escalating tensions in the Middle East.

Initially, China's Shanghai Composite Index soared by over 3 percent but later pared most of its gains, closing 0.59 percent higher at 3,422.66. Conversely, Hong Kong's Hang Seng Index changed direction, ending 0.5 percent lower at 20,311.28.

According to official data released today, China's exports grew at a slower rate while imports unexpectedly decreased in November. Exports rose by 6.7 percent year-over-year, falling short of the 12.7 percent growth posted in October. Imports saw a 3.9 percent decline from the previous year, compared to a 2.3 percent drop in October.

Japanese markets saw modest gains as the yen weakened against the U.S. dollar for the second consecutive day, and speculation about a policy shift in China boosted market sentiment. The Nikkei average rose by 0.53 percent to 39,367.58, while the broader Topix Index increased by 0.25 percent to 2,741.41. Shares of companies with significant exposure to China, such as Fanuc, Yaskawa Electric, and Shiseido, surged between 3 and 4 percent.

In Seoul, stocks rebounded from one-year lows after policymakers assured efforts to stabilize the markets, declaring that the recent excessive volatility would be addressed. The Kospi Average climbed 2.43 percent to 2,417.84. Notably, tech giant Samsung Electronics saw a 1.1 percent increase, and automaker Hyundai Motor jumped by 4.7 percent.

Australian markets ended lower following the Reserve Bank of Australia's decision to keep interest rates unchanged, as widely anticipated, with a dovish outlook. The benchmark S&P/ASX 200 dropped 0.36 percent to 8,393, and the All Ordinaries Index decreased by 0.43 percent to 8,650. Losses in technology stocks and banks overshadowed gains in the mining and energy sectors. IAG shares fell 1.7 percent as the insurer announced it would contest a class action in the Victorian Supreme Court.

In New Zealand, the benchmark S&P/NZX-50 Index closed down 0.61 percent at 12,723.37.

U.S. stocks declined overnight after reaching record highs on Friday. The Dow fell by 0.5 percent, while both the tech-heavy Nasdaq Composite and the S&P 500 shed about 0.6 percent as the threat of conflict in the Middle East intensified and key inflation data awaited release.