Mainland and Hong Kong stocks closed lower on Tuesday, weighed down by new energy shares, as traders assessed subdued sentiment across global markets ahead of closely watched US economic data.

The benchmark Hang Seng Index ended the day down 454 points, or 1.72 percent, at 25,930 while the city's tech index dropped 1.93 percent.

Up north, the benchmark Shanghai Composite Index was down 0.81 percent at 3,939 while the Shenzhen Component Index closed 0.92 percent lower at 13,080 and the ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, lost 1.16 percent to 3,069.

The combined turnover of these two indexes stood at 1.93 trillion yuan, up from 1.91 trillion yuan on Monday.

Shares related to coal, chemicals and pesticides and fertilizers suffered major losses while those related to furniture, electronics information and printing and packaging posted significant gains.

Both Asian and US equities retreated, with investors taking a cautious stance as they await the release of delayed US economic indicators that could shed light on the Federal Reserve's timeline for policy easing and influence global financial conditions.

The data backlog, caused by the recent US government shutdown, will start to clear this week, with the critical September nonfarm payrolls report scheduled for release on Thursday.

Markets have trimmed their bets for a December Federal Reserve rate cut, pricing in just over a 40 percent chance of a 25-basis-point reduction, down from more than 60 percent this month.

New energy stocks were among the biggest losers, with the sector falling 3.19 percent. Another sub-index, which also tracks the sector, plunged 3.56 percent.

The Hang Seng Index witnessed a nearly 30 percent jump. And some analysts expect the upward momentum to sustain next year.

"We expect another positive year ahead for the Chinese equities as many of the favourable drivers from 2025 should continue to support the market," said James Wang, head of China strategy at UBS Investment Bank Research, referring to factors including AI, accommodative policy and sustained fiscal expansion and ample liquidity.

"We continue to prefer internet, hardware tech and broker names while we remove high dividend stocks as their yield has been bid down and we add select 'going abroad' stocks as global growth improves next year," he said. (Reuters/Xinhua)