Asian stocks ended mixed on Tuesday as many regional markets resumed trading after a long holiday weekend.
A stronger dollar and higher Treasury yields weighed on sentiment as strong U.S. manufacturing data stirred fresh worries over the timing of interest rate cuts by the Federal Reserve.
Gold scaled a record high while oil prices rose over 1 percent in Asian trading on heightened geopolitical tensions and indications of potential demand improvement in China and the United States, the two largest oil-consuming nations in the world.
Chinese shares ended on a flat note after a choppy session. The benchmark Shanghai Composite index finished marginally lower at 3,074.96.
Hong Kong\'s Hang Seng index rallied 2.36 percent to 16,931.52 as traders returned from a two-session holiday break.
Xiaomi Corp surged 9 percent following its debut electric vehicle. Country Garden Holdings shares were suspended, days after the debt-ridden property developer postponed the release of its 2023 results.
Japanese markets ended on a muted note as the risk of currency intervention by Japanese authorities lingered, and doubts emerged about the timing of Federal Reserve rate cuts.
Japanese Finance Minister Shunichi Suzuki offered some verbal intervention today, warning against excessive currency market volatility.
The Nikkei average closed marginally higher at 39,838.91 after briefly scaling 40,000 points earlier. The broader Topix index settled 0.25 percent lower at 2,714.45.
Chip-making equipment giant Tokyo Electron held onto recent gains, rising 3.4 percent to 39,610 yen. Sumco Corp, which produces silicon used for semiconductor manufacturers, surged 4.4 percent.
Seoul stocks eked out modest gains as data showed headline inflation in the country topped 3 percent for a second consecutive month in March. The Kospi average inched up 0.19 percent to 2,753.16.
Australian and New Zealand markets ended on a subdued note as regional bond yields climbed, echoing moves in U.S. Treasuries.
Australia\'s benchmark S&P ASX 200 slipped 0.11 percent to 7,887.90 after repots the country\'s central bank will switch to a new system for the implementation of monetary policy.
The broader All Ordinaries index finished marginally lower at 8,145.80 after the release of RBA meeting minutes and weak manufacturing data.
Across the Tasman, New Zealand\'s benchmark S&P NZX-50 index ended little changed with a negative bias at 12,095.85.
U.S. stocks gave up early gains to end mixed overnight while bond yields spiked as strong manufacturing data along with signs of rising component prices in the ISM report raised concerns about stubborn inflation and poured cold water on hopes for interest rate cuts in June.
Investors also reacted to Friday\'s release of PCE inflation data and Fed Chair Jerome Powell\'s comments that the U.S. central bank is in no rush to begin cutting interest rates.
The Dow shed 0.6 percent and the S&P 500 eased 0.2 percent while the tech-heavy Nasdaq Composite edged up 0.1 percent.