Asian stocks mostly lower in lackluster trade

HONG KONG — Asian stock markets were mostly lower Tuesday as investors continued to worry about a recent interest rate rise in China and stayed on the sidelines ahead of the release of key US home price data later in the day. Investors, with little news to focus on during the holiday period, are still bogged down by fears over the effect of China's rate hike announced over the weekend, analysts said. "I think it's a sudden attack by bears in a very quiet situation," said Alex Wong, director at Ample Financial Group. "Sentiment was still cautious, people are still liquidating mainland banks and also mainland automobile stocks. Mainland property stocks remain weak as well." Higher interest rates would make it more expensive for people to borrow money to buy homes. China auto stocks have been dragged down in recent days after an announcement last week that traffic-clogged Beijing would sharply limit new vehicle registrations. Markets are swinging in wide ranges because very few trades are being done, Wong said. "A few big orders can move the market right now." China's Shanghai Composite Index fell 1.3 percent to 2,744.41 while Hong Kong's Hang Seng index shed 1 percent to 22,617.01 in the morning session. Japan's benchmark Nikkei 225 stock average declined 44.25 points, or 0.4 percent, to 10,311.41. Elsewhere, South Korea's Kospi rose 0.8 percent to 2,039.06. Shares in Singapore, Thailand and India were marginally higher. Markets in Australia and New Zealand were closed for the Boxing Day holiday officially observed Tuesday. In New York on Monday, US stocks were little changed after China's interest rate increases. Beijing aims to tame inflation, which jumped to 5.1 percent in November, a 28-month high. The Dow Jones industrial average slipped 18.46 points, or 0.2 percent, to 11,555.03 Monday. Trading was thin as many traders stayed home because of the heavy snow. The tech-heavy Nasdaq composite index was marginally up 1.7 points to 2,667.27. Across Asia, investors are also taking a wait-and-see stance ahead of Tuesday's release of the closely watched S&P/Case-Shiller house price index for October. The index is a broad gauge of U.S. home prices. In currencies, the dollar fell to 82.51 yen in Tokyo Tuesday from 82.78 yen in New York late Monday. The euro edged up to $1.3238 from $1.3164. Benchmark oil for February delivery rose 6 cents to $91.06 in electronic trading on the New York Mercantile Exchange. — AP