Asia stocks pull back amid caution over U.S. rate, new work visa and China's tech selloff

[Financial stock market numbers and city light reflection]
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Asia stocks trade mostly lower on Tuesday, despite a strong close on Wall Street, amid mixed signals on U. S. interest rates and new work visa rules from President Trump causing caution. Trading volumes were low due to a Japanese holiday, and investors were cautious ahead of important U. S. economic reports.

Singapore’s annual inflation rate edged down to 0.5% in August 2025, compared to market expectations and the prior month’s 0.6%.

Malaysia’s annual inflation rate edged up to 1.3% in August 2025 from 1.2% in the previous month, marking the highest reading since April and aligning with market forecasts.

Silver hovered just below $44 per ounce on Tuesday, staying close to 14-year highs. Gold hits a fresh record high above $3,750 an ounce on Tuesday.

Japan (NKY:IND [https://seekingalpha.com/symbol/NKY:IND]) market closed. The Japanese yen [https://seekingalpha.com/symbol/USD:JPY#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews] firmed toward 147.5 per dollar on Tuesday, rebounding from two-week lows.

China (SHCOMP [https://seekingalpha.com/symbol/SHCOMP]) fell 1.15% to below 3,800 while the Shenzhen Component dropped 0.5% to 13,090 on Tuesday, giving back prior-session gains as investors took profits in technology and new energy shares, and the offshore yuan [https://seekingalpha.com/symbol/USD:CNY#source=url_first_level%3Amarket-news%7Csection%3Aglobal%7Csection_asset%3Afull_story%7Cbutton%3Abody_link] remained steady around 7.11 per dollar on Tuesday, holding firm near its highest level since early November last year.

The U.S. and China are nearing the final stages of talks on a major Boeing Co. aircraft purchase, U.S. Ambassador to China David Perdue said, according to Bloomberg News.

China’s central bank chief pledged on Monday to use a range of monetary policy tools to ensure ample liquidity, reduce funding costs, and support the country’s economic recovery.

President Donald Trump will declare this week that a deal to divest TikTok's U.S. operations from Chinese parent ByteDance meets the requirements of a 2024 law, a White House official said Monday.

Hong Kong (HSI [https://seekingalpha.com/symbol/HSI]) fell 0.95% to 26,160 in early deals on Tuesday, marking a second day of losses as most sectors retreated.

India (SENSEX [https://seekingalpha.com/symbol/SENSEX]) fell 0.33% to 81,909 in morning trade on Tuesday, marking its third consecutive decline and hitting its lowest level in over a week as a sharp increase in H-1B visa costs continued to weigh on market sentiment. The Indian rupee breached another all-time low to around 88.5 per dollar on Tuesday.

India’s Directorate General of Trade Remedies has recommended a five-year anti-dumping duty on certain steel imports from China to protect the domestic industry, The Economic Times reported.

India on Monday sought consultations with Indonesia under the World Trade Organization’s safeguard agreement regarding Jakarta’s proposal to impose import duties on cotton fabric, The Economic Times reported.

Traders also closely watched developments in US-India trade talks after President Trump’s move to curb skilled visas for foreigners added fresh tension to bilateral ties.

On the data front, preliminary figures showed India’s private sector growth eased in September to 61.6 from August's record high, with both manufacturing and services expanding at a softer pace.

Australia (AS51 [https://seekingalpha.com/symbol/AS51]) rose 0.45% to 8,849 on Tuesday, marking its third consecutive session of gains, buoyed by continued strength in gold and mining stocks. The Australian dollar [https://seekingalpha.com/symbol/AUD:USD#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews] weakened past $0.658 on Tuesday, reversing gains from the previous session, as investors weighed the underwhelming PMI data.

The S&P Global Australia Manufacturing PMI fell to 51.6 in September 2025 from 53 in August. The S&P Global Flash Australia Services PMI Business Activity Index showed a modest slowdown to 52 in September, from 55.8 in August.

Investors are now turning their attention to the Monthly CPI Indicator, due for release on Wednesday.

In the U.S. on Monday, all three major indexes ended higher as Wall Street extended its record-setting streak, fueled by optimism in Big Tech megacaps.

Attention now turns to Friday’s PCE price index, the Fed’s preferred inflation gauge, for fresh policy cues.

U.S. stock futures were little changed on Tuesday after Wall Street notched another record-setting rally powered by megacap tech gains: Dow +0.11%; S&P 500 +0.02%; Nasdaq +0.02%.

CURRENCIES: (JPY:USD [https://seekingalpha.com/symbol/JPY:USD]), (CNY:USD [https://seekingalpha.com/symbol/CNY:USD]), (AUD:USD [https://seekingalpha.com/symbol/AUD:USD]), (INR:USD [https://seekingalpha.com/symbol/INR:USD]), (HKD:USD [https://seekingalpha.com/symbol/HKD:USD]), (NZD:USD [https://seekingalpha.com/symbol/NZD:USD]).

MORE ON ASIA:

Australia manufacturing, services PMI growth slows in September [https://seekingalpha.com/news/4497497-australia-manufacturing-services-pmi-growth-slows-in-september#source=url_first_level%3Amarket-news%7Csection%3Amarket-pulse%7Csection_asset%3Anews_title]

PBOC holds rates steady for fourth straight month, despite economic slump [https://seekingalpha.com/news/4496828-pboc-holds-rates-steady-for-fourth-straight-month-despite-economic-slump#source=url_first_level%3Amarket-news%7Csection%3Amarket-pulse%7Csection_asset%3Anews_title]

China's central bank injects CNY 195B into banking system, maintains key interest rate of 1.4% [https://seekingalpha.com/news/4495905-chinas-central-bank-injects-cny-195b-into-banking-system-maintains-key-interest-rate-of-14#source=url_first_level%3Amarket-news%7Csection%3Amarket-pulse%7Csection_asset%3Anews_title]

Australia's jobless rate holds steady at 4.2%, employment unexpectedly eases in August [https://seekingalpha.com/news/4495903-australias-jobless-rate-holds-steady-at-42-employment-unexpectedly-eases-in-august#source=url_first_level%3Amarket-news%7Csection%3Amarket-pulse%7Csection_asset%3Anews_title]

Japan's trade deficit narrows significantly in August, exports see smallest drop in four months, imports hit six-month low [https://seekingalpha.com/news/4495498-japans-trade-deficit-narrows-significantly-in-august-exports-see-smallest-drop-in-four-months-imports-hit-six-month-low#source=url_first_level%3Amarket-news%7Csection%3Amarket-pulse%7Csection_asset%3Anews_title]