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Most Asian stock markets hovered near the flatline on Tuesday, mirroring overnight softness on Wall Street after renewed selling in heavyweight technology stocks, while thin year-end liquidity and upcoming New Year holidays kept trading activity subdued across the region.
U.S. index futures were broadly steady during Asian hours, offering little near-term direction.
Asia markets muted amid light volumes
Regional markets struggled for clear momentum as many investors remained on the sidelines, with several exchanges set to close or operate on shortened schedules later in the week.
Wall Street ended lower on Monday, paring part of its recent rebound as losses in major technology names dragged broader benchmarks. The pullback dampened risk appetite, with investors wary of adding exposure at elevated valuations near year-end and ahead of key U.S. policy signals.
Asian equities largely tracked the overnight tone.
Japan’s Nikkei 225 and the broader TOPIX each slipped 0.1%, while South Korea’s KOSPI was little changed. Singapore’s Straits Times Index outperformed, rising 0.6% against the regional trend.
India’s Nifty 50 inched up 0.1%, and Australia’s S&P/ASX 200 traded flat. China’s Shanghai Composite was steady, while Hong Kong’s Hang Seng index gained 0.3%.
Fed minutes in focus
Caution prevailed ahead of the release of minutes from the U.S. Federal Reserve’s December policy meeting later on Tuesday. Investors are looking for greater insight into policymakers’ thinking following the central bank’s latest rate decision and its guidance on the outlook for interest rates beyond next year.
Markets have increasingly priced in the prospect of further policy easing in 2026 as inflation continues to cool and economic growth shows signs of moderation. However, uncertainty persists around the timing and magnitude of any future rate cuts, particularly if incoming U.S. data remains resilient.
