Asia stocks mostly lower, with China data in focus

Asian markets traded mostly lower Tuesday ahead of Chinese data due out later in the session, while Australia bounced back from a selloff in the previous session.

Most of Asia shrugged off a positive overnight lead from the U.S., as markets slipped lower after strong gains in the previous session.

Reuters

Trading was marked by caution after a string of speeches by three Federal Reserve presidents suggested that the U.S. central bank could start to scale back its $85-billion-a-month stimulus program as early as this month. A Fed policy meeting is due to take place next week.

The region was also waiting for a flurry of economic data to come out of Asia's largest economy, with China scheduled to release November figures such as industrial output and retail sales. This will come just after the country posted its largest trade surplus for nearly five years.

Chinese stocks were mixed ahead of the data. The Shanghai Composite (CN:SHCOMP)  added 0.4% on the mainland, while Hong Kong's Hang Seng Index (HK:HSI)  dropped 0.3%.

Japan's Nikkei Average (JP:NIK)  fell 0.3%, with the index shrugging off a weakening yen (USDJPY) , as the market pulled back from a sharp 2.3% jump Monday. The dollar gained 0.4% against its Japanese counterpart Monday and strengthened slightly Tuesday to ¥103.21, within striking distance of the 2013 high of ¥103.74.

Shares of Japanese real-estate companies managed to move higher in Tokyo, with Mitsui Fudosan (JP:8801)   (MTSFF)  up 1.6%, and Mitsubishi Estate Co. (JP:8802)   (MITEF)  up 1.9%. Local exporters, however, failed to lead the market lower: Honda Motor Co. (JP:7267)   (HMC)  lost 0.8%, and Kyocera Corp. (JP:6971)   (KYOCF)  fell 0.6%

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HSBC Australia's chief economist Paul Bloxham discusses the future of China-Australia economic relations, and what policy measures need to be made to ensure a stable economic future for Australia.

"Amid uncertainties surrounding a pullback of the Federal Reserve's monetary easing, investors are hesitant to pursue exporters. Their domestic-demand-driven shares are generating interest," said Shun Maruyama, chief equity strategist at BNP Paribas.

South Korea's Kospi (KR:SEU)  fell 0.3%, Singapore's Straits Times Index (SG:STI)  lost 0.1%, and the Philippines PSE Composite (PH:PSEI)  dropped 0.2%.

Australia's S&P/ASX 200 (AU:XJO)  rose 0.6%, as Sydney bounced back from a Monday selloff after a profit warning from QBE Insurance (AU:QBE)   (QBEIF)  surprised the market and gave broader sentiment a hit. The insurer fell another 6.4% Tuesday, but a number of banks staged a healthy recovery. National Australia Bank (AU:NAB)   (NAUBF)  rose 1.2% and Australia & New Zealand Banking Group (AU:ANZ)   (ANEWF)  added 0.9%.

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