The China Mail - Asian stocks dip as Santa snubs Wall Street

The three main US indices all slumped around one percent on Monday, adding to Friday's losses, with Tesla down 3.3 percent and Facebook owner Meta off 1.4 percent.

Volumes were thin but brokers said investors were locking in gains after a bumper 2024, particularly for the "Magnificent Seven" troop of US tech giants.

Concerns about the slow pace of US interest rate cuts by the Federal Reserve and uncertainty about incoming president Donald Trump's tariff plans were also souring the mood.

"In Asia, notably China, tariffs may appear to be a manageable obstacle if they were the only concern," said Stephen Innes at SPI Asset Management.

"However, China's economic difficulties go well beyond simple trade conflicts. The nation is also contending with serious domestic consumption challenges and self-induced setbacks in its technology sector," Innes said.

China's Purchasing Managers' Index (PMI) for manufacturing was 50.1 in December, signalling a third consecutive month of expansion, official data showed on Tuesday.

"Increased policy support towards the end of the year has clearly provided a near-term boost to growth," said Gabriel Ng of Capital Economics.

Tokyo was shut on Tuesday, with the Nikkei 225 posting on Monday its best year-end close since Japan's asset bubble burst in the 1990s.

Elsewhere among major Asian indices, the Hang Seng was the only bright spot, up 0.7 percent by late morning, while stocks in China, South Korea and Australia all dipped.

Rescuers handed over the first bodies from Sunday's crash by a Jeju Air Boeing 737-800 to grieving families on Tuesday, South Korea's deadliest air disaster on its own soil in which 179 people were killed.

Boeing shares fell more than five percent on Wall Street on Monday before recovering.

Jeju Air shares dropped as much as 15 percent on Monday.

On the political front, a South Korean court has issued an arrest warrant for Yoon Suk Yeol, the impeached and suspended president who briefly declared martial law on December 3.

- Key figures around 0400 GMT -

Tokyo - Nikkei 225: closed

Hong Kong - Hang Seng Index: UP 0.7 percent at 20,175.76

Shanghai - Composite: DOWN 0.8 percent at 3,377.45

Euro/dollar: UP at $1.0413 from $1.0401 on Monday

Pound/dollar: UP at $1.2557 from $1.2548

Dollar/yen: DOWN at 156.41 yen from 156.80 yen

Euro/pound: UP at 82.93 pence from 82.89 pence

West Texas Intermediate: UP 0.6 percent at $71.40 per barrel

Brent North Sea Crude: UP 0.5 percent at $74.38 per barrel

burs-stu/pbt

A.Sun--ThChM