Hong Kong Stock Exchange signage in Hong Kong. HKEX has added a new system that will connect the capital markets in Hong Kong and the mainland.
Vernon Yuen | Photo only | Getty Images
Asia-Pacific markets were mixed on the first trading day of the year, with Chinese stocks slumping at the open after official data over the weekend suggested a worsening contraction in the country's manufacturing sector.
Official data showed China's manufacturing PMI continued to contract in December 2023, a sign that more policy support is likely needed to restart the economy.
China's CSI 300 index opened 0.64% lower on Tuesday, while Hong Kong's Hang Seng index lost 0.58%. Both markets were among the worst performing markets in 2023.
Japan assessed damage from a powerful earthquake that struck its central region on New Year's Day. Markets in the region are closed until January 4th.
Nearly 100,000 people were ordered to evacuate and at least eight people were reported to have died in the quake, which had a preliminary magnitude of 7.6. Japan's Nikkei 225 ended 2023 up over 28%, making it Asia's best-performing market.
In Asia Pacific, private factory activity surveys will be available from S&P Global for China, Australia and South Korea, as well as fourth-quarter gross domestic product figures from Singapore.
Australia's S&P/ASX 200 rose 0.4%, reaching its highest level in more than two years.
South Korea's Kospi rose 0.1%, while the small-cap Kosdaq gained 0.56%.
In the US, stock futures were flat in overnight trading on Monday as the market prepares for the start of the new year.
Futures on the Dow Jones Industrial Average were little changed, while futures on the S&P 500 and Nasdaq 100 traded slightly above the flatline. The markets were closed on Monday for New Year's Day.
—CNBC's Yun Li contributed to this report