The Asian market is declining due to the pandemic

Asian stock market

The Asia-Pacific stock indices were traded mixed on Tuesday morning after the key US stock indices on Monday interrupted a profitable four-day session.

The indices of Japan, South Korea and Hong Kong fell in the morning session, while those of China were mixed and those of Australia rose slightly.

Japan's Nikkei 225 fell 0.30% to 21:15 EST (02:15 UTC), while South Korea's KOSPI fell 0.79%.

Australia's S&P/ASX 200 index rose by 0.22%.

The Hong Kong Hang Seng Index fell by 0.56% shortly after the opening of the morning session.

China's Shanghai Composite fell by 0.21%, while the high-tech Shenzhen Component rose by 0.33%.

The market was pressured by news of renewed tensions between the US and China, the first of which is preparing to impose sanctions on more than a dozen Chinese officials for their actions to curb dissent in Hong Kong, Reuters reports.

The sharp rise in tensions has eclipsed the strong recovery in Chinese foreign trade. Data released on Monday showed that Chinese exports in November jumped the most since the beginning of 2018, with the country's trade surplus reaching a record monthly high.

In the US, the S&P 500 index fell from record highs on Monday as new quarantine restrictions came into effect in some parts of the country, including California. However, the high-tech Nasdaq is growing for the ninth consecutive day.

The market is now increasingly likely to expect the US government to agree to a new stimulus deal that could cost more than $900 billion, particularly after employment data published on Monday proved disappointing, indicating that the recovery from the pandemic is beginning to slow down.

The US government is also negotiating a public expenditure agreement. Without such an agreement, the government will have to close down. The initial deadline for a spending agreement was Friday, but the negotiators seemed willing to extend the deadline.