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Asian shares tumbled on Tuesday as readings on China’s industrial movement failed to meet anticipations, underlining weakness in the world’s second-biggest economy in spite of Beijing’s tries to spur development.

The dollar-denominated MSCI index of Chinese shares plunged 0.8 percent. However Chinese blue chips in Shanghai and Shenzhen kept losses in check, dropping less than0.1 percent as investors upheld  hopes for more measures to prop up the economy.

Frances Cheung head of macro strategy for Asia at Westpac said that the weak industrial numbers suggest “stimulus is there to stay”. Upbeat data for March had incited several analysts to scale back expectations of added support measures.

MSCI’s widest gauge of Asia-Pacific shares outside Japan was off 0.7 percent. Korean shares led losses for the county, dropping 1.3 percent.

Australian equities dropped 0.6 percent.

Japan's financial markets stay closed for a national holiday as Japanese Emperor Akihito prepares to disown on Tuesday in favor of his elder son, Crown Prince Naruhito.

Asian investors had disregard cautious increases on U.S. stocks overnight that had boosted the S&P 500 index to an intraday record high of 2,949.52. The index wrapped up 0.11 percent at a record closing high of 2,943.03.

The Nasdaq added 0.19 percent to 8,161.85, also a record closing high, and the Dow Jones Industrial Average squeezed out a 0.04 percent increase to 26,554.39.

The quiet begin to the week in worldwide equity markets comes ahead of a two-day meeting of the policy-setting Federal Open Market Committee. The committee is set to release its latest statement on Wednesday.

Fed Expects Interest Rates Unchanged

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The Fed is broadly expected to leave interest rates unchanged, as it seeks to balance robust economic growth in contradiction of low inflation.

In the most recent slew of data sending mixed signals to the Fed, U.S. buyer spending soared at the quickest pace in more than 9-1/2 years in March, however core personal consumption expenditures (PCE), the bank's favored inflation measure, logged its least annual ascent in 14 months.

"We expect the dovish tone from central banks to continue for the foreseeable future. Given evidence of a recovery in growth, this is very positive for risk assets," analysts said in a morning note.

The output on benchmark U.S. 10-year Treasury notes had climbed to a near of 2.536 percent on Monday on strong buyer spending data but was quoted at 2.527 percent in New York.

The two-year yield, watched as a gauge of anticipations of rate increases, was at 2.2942 percent in late New York trades, off from a U.S. close on  Monday of 2.298 percent.

In the currency market, the greenback lost 0.05 percent versus the yen to 111.55, and the euro was barely changed at $1.1184.

The dollar index, which tracks the dollar versus a basket of six major opponents, was also unchanged, holding at 97.852.

However other currencies stayed firm, the dollar soared 0.4 percent versus the Korean won, to 1,163.33.

"The won is both risk- and trade-sensitive, and as such it is suffering," said Cheung at Westpac.

"Upward pressure on USD/Asia is likely to stay before we see some economic improvement (in China)," she added.

Oil prices turned lower, after border higher on Monday as markets tried to continue a rally interrupted by demands from U.S. President Donald Trump that OPEC raise yield.

U.S. crude tumbled 0.2 percent to $63.37 per barrel and Brent crude was down 0.4 percent at $71.75.

Gold showed some luster after falling Tuesday on the U.S data. Spot gold increased 0.2 percent at $1,282.06 per ounce.

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