Asian stocks tumbled while the US dollar drifted near two-month lows on Tuesday as investors adopted a cautious approach ahead of a slate of US data, including the jobs report, that may help gauge the trajectory for Federal Reserve policy next year.

In Hong Kong, the benchmark Hang Seng Index lost 80 points, or 0.32 percent, to open at 25,547.

On the mainland, the benchmark Shanghai Composite Index was down 0.17 percent at 3,861, while the Shenzhen Component Index was 0.21 percent lower at 13,084. The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, was down 0.23 percent at 3,130.

The defensive mood kept risk assets under pressure, including bitcoin, which hit a two-week low in the previous session and was steady at US$56,407. Safe-haven gold flirted with eight-week highs and bought US$4,307.69 per ounce, up 0.15 percent on the day.

On top of the combined US employment reports for October and November due later on Tuesday, investors are also watching out for the inflation report on Thursday, although a number of key details will be missing after the longest US government shutdown in history prevented data collection.

In equity markets, MSCI's broadest index of Asia-Pacific shares outside Japan was down 1 percent in early trading. Tokyo's Nikkei and South Korea's KOSPI Composite Index both fell over 1 percent. Nasdaq futures and European futures fell 0.5 percent, pointing to wobbles at the open.

Charu Chanana, chief investment strategist at Saxo, said the market is treating this week as a mini "reset" of the US macro narrative, with data on jobs, inflation and retail sales landing in a tight window that can quickly reprice rates.

The Fed last week cut interest rates as expected and predicted one more rate cut in 2026, though markets are pricing in at least two more next year.

"If the data is mixed to slightly softer, then the soft-landing narrative stays intact, but it may not be the kind of backdrop that sparks a big risk-on rally," Chanana said.

"The real risk is a hawkish surprise. If inflation or jobs print hotter, yields pop higher and risk assets, especially long-duration growth, feel it first." (Reuters/Xinhua)