Asian markets mostly rise on China hope, euro hit by France woes

The gains, which followed another record day on Wall Street, came as traders were also left assessing Washington's decision to impose fresh tech export restrictions on Beijing in the latest volley in a long-running standoff between the rival powers.

Meanwhile, the euro extended losses on concerns of political and economic upheaval in France, with the country's government facing collapse.

Investors are also looking ahead to the release of US jobs data at the end of the week which could play a key role in the Federal Reserve's decision on whether to cut interest rates again.

The positive performance in Asia followed a recent run-up that was helped Monday by manufacturing activity data suggesting China's economic struggles may be coming to an end.

Bloomberg said Tuesday that China's top leaders, including President Xi Jinping, would hold a two-day economic work conference next week to outline their targets and stimulus plans for next year.

The gathering comes after figures Monday suggested the country's economy could be turning around after almost two years of malaise, and following a raft of support measures unveiled at the end of September.

Hong Kong and Shanghai rose in the afternoon, having retreated in the morning after Washington announced new export restrictions taking aim at Beijing's ability to make advanced semiconductors.

The moves step up existing US efforts to tighten curbs on exports of state-of-the-art AI chips to China.

Beijing hit back, saying the United States "abuses export control measures" and has "hindered normal economic and trade exchanges".

There were also healthy gains in Tokyo, Sydney, Seoul, Singapore, Mumbai, Bangkok and Jakarta, though Wellington and Manila retreated.

Still, investors remain wary about the prospect of a second term for Donald Trump as US president, particularly after he warned last month that he would hit China, Canada and Mexico with heavy tariffs.

"Although recent (manufacturing) data revealed that November saw the fastest expansion in factory activity in months -- likely boosted by exporters rushing to get ahead of Trump's anticipated tariff storm -- the broader economic outlook remains fraught with uncertainty," said Stephen Innes at SPI Asset Management.

"This complex tapestry of market dynamics -- China's manufacturing uptick, the deepening economic concerns, and the dollar's assertive rally -- are all intricately linked to Trump's aggressive trade posturing.

"His vows of imposing hefty tariffs as soon as he enters the Oval Office next month cast long shadows over the Asian markets, making investors both wary and watchful."

The euro weakened against the dollar and was sitting at lows not seen since October last year, owing to a brewing political crisis in France, the eurozone's second-largest economy.

Prime Minister Michel Barnier faces the risk of being deposed in a no-confidence vote, expected on Wednesday, after he used executive powers to force through controversial social security legislation without a vote.

The left wing as well as the far-right National Rally of Marine Le Pen both said they would back a motion bringing down the minority government, which has been in power for just three months.

The yield on French government debt rose in another sign of investor concern. France must now pay as much as Greece to borrow for 10 years.

Key figures around 0710 GMT

Tokyo - Nikkei 225: UP 1.9% at 39,248.86 (close)

Hong Kong - Hang Seng Index: UP 0.6% at 19,674.67

Shanghai - Composite: UP 0.4% at 3,378.81 (close)

Euro/dollar: DOWN at $1.0488 from $1.0499 on Monday

Pound/dollar: DOWN at $1.2650 from $1.2654

Dollar/yen: UP at 150.00 yen from 149.54 yen

Euro/pound: DOWN at 82.91 from 82.97 pence

West Texas Intermediate: UP 0.4% at $68.35 per barrel

Brent North Sea Crude: UP 0.5% at $72.15 per barrel

New York - Dow: DOWN 0.3% at 44,782.00 (close)

London - FTSE 100: UP 0.3% at 8,312.89 (close)