Asia stocks trade in red on Tuesday as the momentum from the recent rally, which was largely fueled by sustained buying in technology shares, appeared to lose steam. Meanwhile, Wall Street rallied overnight on the back of a rebound in AI names and hopes that the prolonged US government shutdown may soon end. Although the U.S. Senate passed legislation aimed at ending the long-running government shutdown, the measure had little discernible impact on trading behavior in Asia. Gold rose above $4,130 on Tuesday, hitting a three-week high, as growing economic uncertainty in the US fueled expectations for a near-term Federal Reserve rate cut. The Reserve Bank of New Zealand’s (RBNZ) quarterly survey of expectations showed that business managers forecast inflation at 2.28% for the next two years in Q4 2025, unchanged from the previous three-month period. Japan ( NKY:IND ) fell 0.52% to above 51,300 while the broader Topix Index climbed 0.8% to 3,343 on Tuesday, extending gains from the previous session. The Japanese yen depreciated toward 154.5 per dollar on Tuesday, nearing nine-month lows. Meanwhile, the Bank of Japan’s October Summary of Opinions indicated policymakers are eyeing the next rate hike while closely tracking domestic wage trends. Japan also reported a record current account surplus of JPY 4.5 trillion in September, as exports outpaced imports. Japan’s service sector index rose to 49.1 in October 2025 from 47.1 in September, marking the highest level since March 2024 and the sixth consecutive monthly increase, exceeding market expectations of 47.6. Japan’s bank lending rose 4.1% in October 2025, up from a 3.8% gain in September, matching the consensus forecast and marking the fastest pace since April 2021. China ( SHCOMP ) fell 0.45% to below 4,010, while the Shenzhen Component dropped 0.6% to 13,350 on Tuesday as investors locked in profits after Chinese stocks reached fresh ten-year highs, and the offshore yuan Investors are shifting from high-flying technology and AI-linked names to high-dividend value plays amid concerns that tech earnings may not justify lofty valuations. Several veteran Chinese fund managers also reportedly paused new subscriptions to their products over fears of a market bubble. Investor caution grew ahead of key Chinese data releases, including October credit growth, industrial output, and retail sales. Hong Kong ( HSI ) fell 0.44% to 26,587 in Tuesday morning deals, reversing Monday’s rally as consumer shares led losses. Locally, Hong Kong’s final Q3 GDP figures are due later this week and may show modest improvement, as suggested by flash estimates. India ( SENSEX ) fell 0.41% to 83,227 in morning trade on Tuesday, halting gains from the previous session. The Indian rupee was little changed around 88.7 per USD, trading in a sideways range, as upbeat comments from US President Trump on a potential India-US trade deal offered limited support. US President Donald Trump on Tuesday hinted at coming closer to a trade deal with India, saying that at some point, the US would reduce tariffs on Indian goods. Trump made the remarks during the swearing-in ceremony of Sergio Gor as the Ambassador to India, according to the Economic Times. Australia ( AS51 ) fell 0.19% to above 8,850 on Tuesday, climbing for the second straight session. The Australian dollar Australia’s NAB Business Confidence Index edged down to 6 in October 2025 from 7 in the previous month, though it remained above the long-run average. Australia’s Westpac-Melbourne Institute Consumer Sentiment Index surged 12.8% in November 2025 to 103.8, topping the 100 mark for the first time since February 2022. The South Korean won slipped to around 1,464 per dollar on Tuesday, falling to its lowest level in seven months, as sentiment was weighed down by concerns over ongoing capital outflows and BOK caution. In the U.S. on Monday, all three major indexes ended higher after the Senate advanced a procedural measure that moves a funding bill to reopen the government and end the 40-day shutdown a step closer to passage. U.S. stock futures were little changed on Tuesday after Wall Street opened the week with solid gains: Dow +0.05% ; S&P 500 -0.12% ; Nasdaq -0.22% . Currencies: ( JPY:USD ), ( CNY:USD ), ( AUD:USD ), ( INR:USD ), ( HKD:USD ), ( NZD:USD ). More on Asia: China consumer inflation rises 0.2% Y/Y, core CPI hits 20-month high, PPI decline slows China's trade surplus shrinks in October as exports unexpectedly fall combined with a rise in imports China’s factory growth cools to 50.6 in October, export uncertainty rises Australian monthly inflation eases slightly, annual figures show persistent pressure China's economic slowdown deepens as factory activity hits six-month low to 49.0 in October
