Asia stocks drop amid thin trading, China’s slower manufacturing expansion weighs

Investing.com– Asian stocks were largely subdued on Tuesday tracking overnight losses on Wall Street amid thin trading volumes at year-end, while investors assessed the Chinese manufacturing activity data.

Trading volumes were thin with most major indexes shut for the year-end holiday. Stock markets in Japan, South Korea, and Thailand were closed on the last trading day of the year, while Hong Kong, Philippines, Australia, and New Zealand will see a shortened trading session for the day.

U.S. stock index futures were slightly lower in Asian trade on Tuesday, after Wall Street fell sharply with tech stocks dipping amid profit-taking on Monday.

Chinese stocks fall as manufacturing activity expands at a slower pace

China’s  and  indexes fell 0.4% each, on Tuesday. 

In contrast, Hong Kong’s  index was 0.7% higher.

China’s expanded for a third straight month in December as a raft of fresh stimulus measures continued to provide support, purchasing managers index data showed on Tuesday. data showed on Tuesday.

However, the rise was slightly lower than market expectations and below the previous month’s reading. This sparked concerns about the long-term industrial health of the world’s second-largest economy, which has been suffering from an economic slowdown and a beleaguered property sector.

Markets are holding out for more clarity on Beijing’s plans for stimulus measures in the coming year. Recent reports suggested that the country will ramp up fiscal spending to support economic growth.

In Australia, China’s largest trading partner, the index fell 0.9%.

India’s were 0.2% lower on Tuesday, while Singapore’s  was largely unchanged.

Malaysia’s index inched 0.1% lower.

South Korean political crisis deepens 

South Korean markets were closed on Tuesday. The  index has recorded four consecutive declines since Monday.

A South Korean court approved an arrest warrant on Tuesday for President Yoon Suk Yeol, who has been impeached and suspended from office following his December 3 decision to impose martial law, according to investigative authorities. 

The Corruption Investigation Office for High-ranking Officials (CIO) stated that the Seoul Western District Court granted the warrant sought by investigators probing Yoon’s brief imposition of martial law.