Sawt Falasteen - Asian markets mixed after US-China chip move, euro hit by France woes

A tech-led rally in the Dow and S&P 500 helped New York stocks to a strong start to the month, having enjoyed a healthy November on hopes that US President-elect Donald Trump will usher in more business-friendly measures.

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 mixed 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.

In early trade on Tuesday, Tokyo, Sydney, Seoul, Singapore and Manila were all higher but Hong Kong, Shanghai and Wellington retreated.

Fuelling uncertainty was news that Washington had announced new export restrictions taking aim at Beijing's ability to make advanced semiconductors in the latest volley in the tech standoff between the world's leading economies.

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".

The mood was also tinted by worries over Trump's second term in the White House, 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."

On currency markets, 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 and the far-right National Rally of Marine Le Pen 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 to borrow for 10 years as Greece.

- Key figures around 0230 GMT -

Tokyo - Nikkei 225: UP 1.7 percent at 39,180.06 (break)

Hong Kong - Hang Seng Index: DOWN 0.4 percent at 19,478.28

Shanghai - Composite: DOWN 0.3 percent at 3,354.50

Euro/dollar: DOWN at $1.0491 from $1.0499 on Monday

Pound/dollar: DOWN at $1.2649 from $1.2654

Dollar/yen: UP at 149.82 yen from 149.54 yen

Euro/pound: DOWN at 82.93 from 82.97 pence

West Texas Intermediate: UP 0.2 percent at $68.21 per barrel

Brent North Sea Crude: UP 0.2 percent at $71.97 per barrel

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

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

K.AbuTaha--SF-PST