CANBERA (dpa-AFX) - Asian stocks fell broadly on Tuesday as investors awaited crucial U.S. jobs and inflation readings for additional clues on the Fed's rate trajectory in the new year.
The November jobs report, due later in the day will also include an estimate of October payrolls that were delayed by the federal shutdown.
The U.S. consumer price index, due on Thursday could also influence the future path of interest rates.
The dollar hovered near a two-month low in Asian trade and gold dipped below $4,300 per ounce while oil extended losses on fears of a global glut.
Chinese and Kong shares fell sharply, with selling seen across the board on growth concerns and Beijing's reluctance to unveil sweeping stimulus.
China's Shanghai Composite index ended down 1.11 percent at 3,824.81 after hitting a two-month low earlier in the day. Hong Kong' Hang Seng index fell 1.54 percent to 25,235.41.
Japanese markets tumbled as the yen strengthened against the dollar on safe haven buying and amid bets of a Bank of Japan rate increase later this week. Investors also digested December PMI data showing a modest cooling in overall momentum.
The Nikkei average slumped 1.56 percent to 49,383.29, closing below the 50,000 mark for the first time in over three months.
The broader Topix index settled 1.78 percent lower at 3,370.50 amid bond market jitters. Chip and artificial intelligence stocks led losses, with Renesas and Shin-Etsu Chemical losing 4-5 percent. Robotics firm Yaskawa Electric plunged 7 percent.
Seoul stocks lost ground amid lingering concerns over the artificial intelligence (AI) sector's profitability. The Kospi average fell 2.24 percent to 3,999.13, ending below the 4,000 mark for the first time in more than a week. Hyundai Motor, SK Hynix and LG Energy Solution tumbled 3-5 percent.
Australian stocks ended modestly lower on fears that the Reserve Bank of Australia could begin tightening policy as soon as February.
Adding to the cautious mood, a survey showed Australia's consumer confidence slumped in December.
The benchmark S&P/ASX 200 dipped 0.42 percent to 8,598.90 while the broader All Ordinaries index closed 0.48 percent lower at 8,880.60.
Across the Tasman, New Zealand's benchmark S&P/NZX-50 index edged up by 0.13 percent to 13,424.95.
Overnight, U.S. stocks ended lower as investors braced for key economic data releases, including delayed jobs and inflation readings for clarity on the outlook for interest rates.
New York Fed President John Williams said monetary policy is well positioned for next year and he sees inflation moderating amid cooling in the job market.
Boston Fed President Susan Collins said last week's rate reduction was a close call and that she 'would want greater clarity about the inflation picture before adjusting policy further.'
Fed Governor Stephen Miran argued the policy stance is unnecessarily restrictive.
The tech-heavy Nasdaq Composite shed 0.6 percent as AI spending worries continued to weigh on stocks like Broadcom) and Oracle. The S&P 500 eased 0.2 percent and the Dow slid 0.1 percent.
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