Asian markets experienced declines on Tuesday, attributed to subdued trading activity amid regional holidays. Both Japanese and South Korean markets were closed, the latter for New Year's Eve, with Japan's stock exchanges remaining shut until January 6. Markets in Australia, New Zealand, Singapore, and Hong Kong observed early closures for the year's end.
The U.S. dollar maintained strength, projected to conclude 2024 with an over 6.5% gain — its strongest annual performance since 2015. Concurrently, gold remained stable on the year's final trading day, poised to achieve over a 26% increase for the year, marking its best performance in a decade. Oil prices rose during Asian trading sessions but were on course for an annual decrease.
China's Shanghai Composite Index dropped by 1.63% to 3,351.76, following reports of a slowdown in factory activity growth for December. In contrast, Hong Kong's Hang Seng Index saw a minor rise, closing at 20,059.95. The Chinese manufacturing Purchasing Managers' Index fell slightly to 50.1 from the previous month's 50.3, while the non-manufacturing PMI surpassed expectations, increasing to 52.2 from 50.0.
Attention also turned towards U.S.-China relations after the U.S. Treasury Department attributed a cyber breach involving certain workstations to a China state-sponsored entity.
In Australia, markets concluded the year with a downturn, driven by losses in the banking, mining, and consumer discretionary sectors. The S&P/ASX 200 Index fell by 0.92% to 8,159.10, its lowest closure since December 20, while the broader All Ordinaries Index decreased by 0.89% to 8,420.50. Across the Tasman Sea, New Zealand's S&P/NZX-50 Index declined by 1.20% to 13,110.74.
In U.S. markets, stocks ended lower for the third consecutive session due to year-end tax considerations and valuation concerns. Reports indicated a slight acceleration in the slowdown of the Chicago area's factory activity at the end of 2024, while pending home sales reached a 21-month high in November. The Dow Jones Industrial Average decreased by 1%, the Nasdaq Composite fell by 1.2%, and the S&P 500 dropped by 1.1%.
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