Asian markets lower
Asian stock markets were mostly lower on Tuesday as traders returned to the Hong Kong bourse for the first time since China raised interest rates on Christmas Day.
Tokyo ended lower on the back of a strengthening yen but investors were broadly ignoring a batch of economic data showing Japanese consumer prices have been slipping every month for almost two years.
Hong Kong shed 0.93 percent, or 212.07 points, to end at 22,621.73 as the market digested Beijing's decision on Saturday to raise rates for the second time since October and it hints that further rises could come.
The central People's Bank of China hiked its one-year lending and deposit rates by 25 basis points each as it struggles to curb borrowing, rein in property prices and tame inflation.
Investors are concerned that a tighter monetary policy by Beijing will restrict growth, which could have a knock-on effect for many other countries that rely on China's huge appetite to boost their own economies.
Shanghai dropped 1.74 percent, or 48.41 points, to 2,732.99 after giving up 1.90 percent on Monday.
Tokyo closed 0.61 percent, or 63.36 points, lower at 10,292.63 as the stronger yen led investors to take profits after the previous day's 0.75 percent gain.
Exporters led the decline as the dollar edged down to to 82.44 yen from 82.78 yen in late New York trade on Monday.
However, Japan's Finance Minister Yoshihiko Noda warned the government was ready to step into the forex markets for a second time in three months to halt the yen's rise, which he described as one-sided.
The government intervened in the market in September as the yen surged to a 15-year high against the greenback.
Market-watchers said dealers were not taking too much from mixed macro-economic data released in the morning showing the core consumer price index dropped 0.5 percent in November from a year ago.
Seoul gained 0.55 percent, or 11.13 points, to 2,033.32.
Sydney and Wellington were closed for bank holidays.
The euro rose to 1.3235 dollars in Tokyo morning trade from 1.3161 dollars in New York late Monday. The European single currency was also up at 109.13 yen from 109.00 yen.
Gold closed at 1,390.00-1,391.00 US dollars an ounce in Hong Kong, up from Friday's close of 1,383.50-1,384.50 dollars.
In other markets:
Singapore closed up 0.77 percent, or 24.34 points, at 3,183.70.
United Overseas Bank gained 1.23 percent to 18.10 Singapore dollars and Keppel Corp advanced 0.92 percent to 10.98.
Taipei fell 0.24 percent, or 21.55 points, to 8,870.76. Bangkok edged up 0.87 percent, or 8.87 points, to close at 1,028.33.
Mumbai was flat, edging down 3.51 points to 20,025.42.
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